Binance Futures to open trading for ADA/USDT perpetual contracts with up to 75x leverage
The margin trading wing of popular cryptocurrency exchange Binance has announced that they will soon be offering traders access to up to 75x leverage on popular cryptocurrency Cardano (ADA).
An announcement by Binance read,
Binance Futures will launch ADA/USDT perpetual contract and trading opens on 2020/01/31 08:00 AM (UTC). Users will be able to select between 1-75x leverage.
#Binance Futures Will Launch $ADA/USDT Perpetual Contract With Up to 75x Leveragehttps://t.co/Zdp78EUckR pic.twitter.com/vUFR2D8mQw
— Binance (@binance) January 30, 2020
Binance has started to take a precautionary measure in order to ensure that there would no market manipulation post the launch of the Futures product. The platform would be implementing a “pricing limit of ±1% on the mark price” within the first 15 minutes of post-trading. This move may have been a result of the exchange being drawn to the drastic price rise of certain cryptos, after announcing support for them on its platform.
The ADA futures contracts will join a host of other derivatives for different underlying cryptocurrencies at Binance. The exchange now offers futures contracts for Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), XRP, EOS, Litecoin (LTC), TRON (TRX), Ethereum Classic (ETC) and Stellar (XLM). All are traded against Tether (USDT).
The addition of margin trading capabilities to smaller altcoins tends to cause them to have heightened volatility, which may suggest that ADA will soon see a massive extension of the volatility it has incurred over the past several weeks and months.
Margin trading has long been a popular way for active investors to capitalize on Bitcoin’s volatility, with platforms like Bitmex growing to account for a vast swath of the trading volume seen surrounding the benchmark cryptocurrency.
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