Having New Perpetual Contracts, Zcash Is Now On Binance Futures
Mark Lemon – Cryptocurrency Broker
On 4th of February, an announcement was made by Binance that the trading of ZEC/USDT contracts would go live on 5th February at 8.00 a.m. Binance made a change here by choosing to set a price limit of ±1% on the mark price. This will only happen in the initial 15 minutes once trading commenced. These Zcash (ZEC)-Tether (USDT) perpetual contracts are launching with Binance’s futures platform. The maximum leverage will be 50x, an alternative to those that buy and sell Bitcoin and other altcoins. The UK FCA is to ban these types of trading instruments form the 6th January 2021.
Differences between Perpetual and Traditional Futures
The CEO of the exchange, Changpeng Zhao, believes that the futures platform has made great institutional participation. He further said the professional traders drive for faster transactions and accommodating speedy trades.
The report shows that after the launching of the Binance Futures platform, their maximum offering leverage was 125x. It was later revealed that the exchange brought the attention of traders towards an insurance fund to help them reduce the chances of auto-deleverage, which was amazing news for traders that buy and sell cryptocurrency via the platform.
Binance has exclaimed that price inconsistency between spot and futures market can be elevated, depending on the determined settlement time. Moreover, there will be no expiration or settlement date for perpetual contracts dissimilar to the traditional futures contracts.