Binance Futures Introduces VIDT Perpetual Contract with 75x Leverage

Binance, the leading cryptocurrency exchange, has announced the launch of a new USDⓈ-margined VIDTUSDT Perpetual Contract, set to go live on August 23, 2024, at 09:30 (UTC). This new offering will allow traders to leverage their positions up to 75 times, according to Binance.com.

Key Features and Details

The VIDTUSDT Perpetual Contract is designed to enhance users’ trading experience by expanding the list of available trading choices on Binance Futures. The contract will feature a maximum funding rate of +2.00% / -2.00% at the time of launch, with funding fees settled every four hours.

Moreover, Binance has stated that it may adjust the specifications of the VIDTUSDT Perpetual Contract based on market risk conditions. These adjustments could include changes to the funding fee, tick size, maximum leverage, initial margin, and maintenance margin requirements.

Multi-Assets Mode and Terms

Traders using Binance’s Multi-Assets Mode will be able to trade the VIDTUSDT contract across multiple margin assets, subject to applicable haircuts. For instance, users can use Bitcoin (BTC) as margin when trading this new perpetual contract.

The VIDTUSDT Perpetual Contract will be subject to Binance’s Terms of Use and the Binance Futures Service Agreement. Users are advised to review these terms to understand the full scope and risks involved in trading futures contracts.

Market Context

The introduction of the VIDTUSDT Perpetual Contract comes amid a broader push by Binance to diversify its product offerings and cater to the growing demand for leveraged trading options. Leveraged trading allows users to amplify their positions, potentially increasing both profits and risks.

This move aligns with Binance’s ongoing efforts to maintain its competitive edge in the rapidly evolving cryptocurrency market. By offering higher leverage options, Binance aims to attract more sophisticated traders looking for greater flexibility and potential returns.

Important Considerations

Binance has issued a disclaimer noting that digital asset prices can be highly volatile, and futures trading carries significant market risk and price volatility. Users are responsible for their own investment decisions and should conduct thorough research and consult financial advisors if necessary.

Additionally, Binance reserves the right to amend or cancel the announcement at any time without prior notice. For the most accurate and up-to-date information, users are encouraged to refer to the original English version of the announcement.

Image source: Shutterstock