Binance has launched 24/7 foreign exchange perpetual futures, moving its TradFi derivatives business into currency markets with USDT settlement and leverage reaching 100x for its first USD-Brazilian real contract.
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Binance Brings FX Trading to TradFi Perpetuals
Binance launches its FX perpetual futures on September 18, adding foreign exchange contracts to its TradFi Perpetual category. The products provide continuous access without expiration dates or contract rollovers.
The first contract, USDBRLUSDT, is against the Brazilian real and settles in USDT. Trading will start on 21st September at 14:00 UTC with a maximum leverage of 100x.
Meanwhile, Binance set the minimum trade size at 0.01 USDBRL and the minimum notional value at 5 USDT. The contract has a tick size of 0.0001 and it is Multi-Assets Mode.
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“FX is one of the world‘s most foundational markets,” said Shunyet Jan, Binance’s Head of Exchange and Trading. He said the exchange plans to extend price discovery beyond traditional FX trading periods.
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Dual Pricing Model Supports Weekend Trading
Foreign exchange markets usually trade around the clock on weekdays, and trading volume is lower during weekends. Binance developed a dual pricing system to support its 24/7 contracts during both periods.
The exchange is in its normal pricing mode from Sunday at 17:00 ET to Friday at 17:00 ET. The index is updated every second, based on a weighted average of prices from third party sources.
Binance will enter Orderbook EWMA mode on the weekends and during public holidays. The method determines an EWMA price based on order book prices when underlying liquidity of the FX market decreases.
In addition, the exchange also has several price sources and mark price and deviation controls in the pricing system.
USDBRLUSDT Offers 100x Maximum Leverage
Funding payments for USDBRLUSDT will take place every eight hours. Binance set the maximum funding rate at 0.375% in either direction and the funding interest rate at zero.
Moreover, the contract also supports Multi-Assets Mode. Traders can access FX perpetual futures through Binance Futures on its website, mobile application and API.
Binance may adjust leverage, margin levels, funding fees and other contract terms when market conditions require changes. The exchange has placed FX alongside commodities and equities within its expanding TradFi Perpetual product range.