Key Insights:
- Now, traders should be able to access the Tesla stock price movements 24 hours a day and 7 days a week, with the new Binance offering.
- All settlements and margins use USDT, which allows crypto users to trade equities without converting their funds into traditional cash.
- The new contracts operate under the supervision of the Abu Dhabi Global Market (ADGM).
The wall between the stock market and the crypto world has officially come down this week, as Binance announced its new product. The world’s largest exchange by trading volume just announced the launch of the Binance TSLA-USDT Perpetual Contract. It lets anyone trade Tesla stock movements using stablecoins.
This move comes after the successful introduction of gold and silver contracts earlier this month. For the first time, a major tech stock is available to the crypto community through a familiar platform.
How Does the New Binance Product Work for Traders?
This new product belongs to a class called “TradFi Perpetuals.” However, unlike a standard stock purchase, you do not own the actual shares of Tesla Inc. Instead, you are trading a contract that tracks the real-time price of the stock on the Nasdaq.
Since it is a perpetual contract, it never expires. In other words, traders can hold a position for as long as they want, as long as they have enough margin to cover it.
The contract is settled in USDT, which makes it very easy for crypto natives to use. Traders also do not need a bank account or a US-based brokerage to participate, and everything stays on the blockchain.
The system even supports Multi-Assets Mode. Here, traders can use other tokens like Bitcoin as collateral to trade the Binance TSLA-USDT Perpetual Contract without selling their core holdings.
Binance TSLA-USDT Perpetual Contract Continuous Trading Without the Weekend Gap
Traditional stock markets are famous for their limited hours. This is frustrating for investors because if news breaks on a Friday night, investors have to wait until Monday morning to react. It leads to price “gaps” that can hurt a portfolio, and Binance is attempting to fix that.
The Binance TSLA-USDT Perpetual Contract solves this problem by staying open 24/7. It means that traders can enter positions based on a late-night tweet from Elon Musk or an unexpected weekend event without waiting for a bell to ring.
This level of access provides a massive advantage for international users. It removes the headaches of time zones and banking holidays, which means that if you see an opportunity at 3:00 AM on a Sunday, you can take it.
This level of flexibility has never been available until now, and it could turn this stock into a crypto-style instrument.
Better Flexibility for Stocks
The possibility to leverage is one of the key characteristics of this new launch. The leverage of positions is up to 5x, which enables traders to sell more Tesla shares using less initial capital. While this increases the risk to traders, it does provide a great way to trade that many retail and institutional traders will appreciate.
The minimum trade size is also very accessible. Traders on Binance can start with as little as 0.01 TSLA. This kind of trading is perfect for people who want to dip their toes into the market without buying a full share.