- Users will have access to varied TradFi market exposure throughout the clock, and they will also have access to many new trading options.
- The XAUUSDT and XAGUSDT contracts, which are the first ever TradFi Perpetual Contracts, correlate to the precious metals gold and silver.
Introducing TradFi Perpetual Contracts, a unique product category that enables users to acquire conventional assets via USDT-settled perpetual contracts, Binance, the biggest cryptocurrency exchange in terms of volume and users, made the announcement today. Through this extension of Binance’s derivatives products, users will have access to varied TradFi market exposure throughout the clock, and they will also have access to many new trading options.
Jeff Li, VP of Product at Binance commented:
“The launch of TradFi Perpetual Contracts marks a key step in bridging traditional finance and crypto innovation. By providing round-the-clock access to conventional assets with a seamless trading experience, we empower users to diversify and manage their portfolios more effectively. Backed by strong regulatory compliance and trust, this product creates new opportunities for crypto and TradFi traders on Binance.”
Binance is the first worldwide trading platform for digital assets to gain a full suite of licenses under the Abu Dhabi worldwide Market (ADGM) framework. This achievement establishes a new benchmark for the regulation of digital assets. Nest Exchange Limited, a Binance entity that is licensed by the Financial Services Regulatory Authority (FSRA) of ADGM as a Recognized Investment Exchange, is the entity that provides TradFi Perpetual Contracts to its customers.
The XAUUSDT and XAGUSDT contracts, which are the first ever TradFi Perpetual Contracts, correlate to the precious metals gold and silver, to which they correspond. In order to further bridge the gap between regular markets and cryptocurrency markets, Binance is actively striving to extend the offering with more trading pairs.
During this launch, TradFi instruments are made available to customers who are already familiar with cryptocurrencies. Additionally, conventional market players are invited to investigate digital assets on the regulated Binance platform. By doing so, it reaffirms Binance’s commitment to maintaining high regulatory standards while simultaneously expanding the range of options available to users and bridging the gap between conventional banking and cryptocurrency.
The trading experience with TradFi perpetual contracts is meant to be straightforward and uncomplicated. These contracts do not have any expiration dates and do away with the need for contract rollovers. Traders may use them to hedge their portfolio strategies across conventional and digital assets, diversify their portfolios, and magnify their portfolio strategies.
Traditional Market Exposure 24 Hours a Day, Seven Days a Week Key Benefits and Features of Continuous Contracts with TradFi Binance’s TradFi perpetual contracts enable continuous trading, including pre-market, post-market, and night sessions for worldwide accessibility and flexibility. This is in contrast to conventional markets, which are restricted to certain trading hours.
Simple and Straightforward: These TradFi perpetual contracts are settled in USDT, which is a common settlement currency, and they have a cost structure that is compatible with the variety of perpetual contracts that Binance already offers. Through this, consumers are provided with a clear and cost-effective method of diversifying across asset classes on a platform that is completely reliable.
Amplification of Trading Through Leverage: Users have the ability to increase their exposure by using the available leverage, which supports a variety of risk profiles and trading methods.
Binance ensures continuous trading even when the underlying assets have restricted market hours. This is made possible by the robust and reliable pricing strategies that are combined with advanced risk management. Binance utilizes advanced pricing and risk management techniques in order to maintain fairness and effectively manage risk during off-hours trading.
Over the course of market hours, the Price Index collects information from a number of different sellers and updates it every second. When it is not during certain hours, it is kept at the previous value in order to preserve its stability.
The Mark Price is updated every second during trading hours, and during off-hours, it applies a smoothed futures price that is generated using an Exponentially Weighted Moving Average (EWMA) in order to reduce rapid price movements.
For the purpose of successfully managing risk in continuous trading, Deviation Constraints are used to limit the divergence between the Mark Price and the Price Index. For instance, a ±3% divergence is used for commodities contracts such as XAUUSDT.
Binance’s web platform, mobile app, and application programming interface (API) all provide access to TradFi Perpetual Contracts. Users are able to explore the available TradFi Perpetual contracts by logging into their Binance accounts, going to Binance Futures, and locating the [TradFi] tab that is placed beneath the symbol search bar.
Disclaimer: Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. TradFi Perps are subject to high market risk and price volatility (particularly outside traditional market hours). You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. All of your margin balance may be liquidated in the event of adverse price movement. Past performance is not a reliable predictor of future performance. TradFi Perps do not represent ownership of the relevant underlying asset. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. For more information, see our Terms of Use, Clearing Rules, Clearing Procedures, Contract Specifications and Risk Warning.
