The new contract offers USDT settlement and a Multi-Assets Mode for traders.

• Binance introduces PONKEUSDT perpetual contract with up to 75x leverage, offering high-risk, high-reward trading for experienced users.
• The PONKEUSDT contract features 24/7 trading and a tick size of 0.00001, ensuring precision in trade entry and exit for users.
• Multi-Assets Mode lets traders use BTC or other assets as collateral for PONKEUSDT, enhancing portfolio flexibility and strategy.

Binance Futures expands its trading products with the introduction of the PONKEUSDT perpetual contract, designed to enhance the trading experience for its users. The new contract, launching on November 4, 2024, at 12:30 (UTC), will support leverage of up to 75x. This addition reflects Binance’s ongoing commitment to offering diverse trading options and meeting the growing demands of its user base.

The PONKEUSDT perpetual contract uses USDT as margin, offering traders the opportunity to gain exposure to Ponke (PONKE) with USDT settlement. This contract has a tick size of 0.00001, allowing for precise trade entries and exits.

Trading is continuous, operating 24/7, providing users with uninterrupted market access. This round-the-clock availability ensures users can respond to global market shifts without delays.

High Leverage and Risk Management

One notable aspect of the PONKEUSDT perpetual contract is its maximum leverage of up to 75x. This high leverage can significantly magnify potential returns, appealing to experienced traders seeking to optimize their strategies. However, it’s crucial to remember that increased profit potential comes with increased risk. Traders should employ sound risk management practices when using high leverage.

The contract’s funding rate is another key factor. At launch, the maximum funding rate will be +2.00% and -2.00%, with funding fees settled every four hours. This frequent settlement helps manage the cost of holding open positions.

The first scheduled funding rate application occurs at 16:00 (UTC) on November 4, followed by settlements every four hours. These settlements aim to keep the contract price aligned with the underlying asset’s spot price, ensuring fair cost distribution between long and short positions.

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Binance has stated that the specifications of the PONKEUSDT contract, including funding rates, tick size, leverage limits, and margin requirements, may be adjusted in response to prevailing market risk conditions. 

This flexibility allows Binance to adapt to changing market dynamics and maintain a balanced trading environment. Traders should stay informed by checking Binance’s official announcements for any changes that might affect their positions or strategies.

Multi-Assets Mode for Enhanced Utility

Adding to its utility, the PONKEUSDT perpetual contract offers a Multi-Assets Mode. This lets users trade the contract using various margin assets. For example, traders can use BTC as collateral for trading PONKEUSDT, giving them greater flexibility in managing their portfolios.

This multi-asset support expands trading strategies and helps diversify risk. However, it is essential to note that using different margin assets is subject to applicable haircuts and other terms set by Binance.