The Benefits of Trading BUSD-Margined Futures

7 min readJun 18, 2022


BUSD-Margined Futures contracts are linear futures products that are listed, collateralized, and settled in US dollars (or Binance USD). BUSD-Margined Futures contracts define transactions that can be easily converted to USD (or other fiat currencies). In other words, BUSD-Margined contracts, like USDT-Margined contracts, are simple to utilize. BUSD, which Binance and Paxos issue, is an NYDFS-compliant stablecoin that is offered by over 36 exchanges and 20 wallets. The BUSD is issued by Paxos Trust Company, which also serves as its USD custodian.

What Exactly Are Stablecoins?

A stablecoin is a digital currency that is pegged to a “stable” reserve asset, such as the US dollar or gold. Stablecoins are intended to be less volatile than unpegged cryptocurrencies such as Bitcoin.

What does it mean to peg a stable coin’s value to a fiat currency, gold, or another crypto-coin? To assure its continued stability, the market value of a stable coin is equal to the value of fiat currency. In practice, this is accomplished by depositing fiat money in a bank reserve. Because the value of 1BUSD is pegged to 1 USD, Binance is required by law to hold 10 billion USD in a bank reserve if there are 10 billion BUSD in circulation.

What Exactly is BUSD?

BUSD is not Binance’s first cryptocurrency. The exchange released its own coin in 2017, but this time it intended to build a more reliable cryptocurrency. Binance partnered with Paxos in September 2019 to launch its own stablecoin, Binance USD (BUSD). The fact that one BUSD is equivalent to one US dollar is the coin’s distinguishing feature.

Paxos and Binance created the stablecoin BUSD. Stablecoin as a Service is provided to third-party enterprises using blockchain technology. They previously established PAX Gold, a gold-backed stablecoin (PAXG). Both BUSD and PAXG coins are regulated by the New York State Department of Financial Services.

BUSD bridges the gap between traditional finance and cryptocurrency. Users may begin investing in cryptocurrencies and blockchain technologies without being concerned about volatility. It also allows users to swap between assets without leaving the blockchain.

Why Should You Use BUSD as Your Collateral?

The fact that BUSD is a high-quality, stable, and trusted coin is a strong reason to keep your Binance futures collateral in BUSD. Other reasons are stated under the benefits of keeping BUSD in any way, such as collateral, staking, dual investment, savings, and so on.

1. Versatility.

BUSD is a global settlement currency that allows traders and investors to exchange a variety of transactions (BNB, ETH, BTC, etc.). That means a trader may open any exchange in the desired cryptocurrency and settle the stablecoin, eliminating the need for traders to buy the underlying cryptos to sponsor any future holdings.

2. Ease of calculating Returns.

The price of fiat-based stablecoins like is linked to the price of a fiat currency. The most widely used stablecoins are linked to the USD, suggesting that 1 BUSD must always be equivalent to one US dollar.

As a result, trading BUSD-Margined futures for fiat money will be simple and straightforward. If you don’t want to compute USD and instead use BUSD, you may check the exchange rate of $1 to the cost of their desired currency and be confident that BUSD maps directly to the same exchange rate.

3. Take advantage of Maker Rebates and Fee Discounts.

Traders that utilize margined contracts will get maker refunds and cheaper costs. The fee decrease applies to all trading pairs, including BUSD, BTC perpetual contracts, and ETH/BUSD contracts.

The Advantages of Holding BUSD

There are various advantages to holding BUSD, particularly on the Binance exchange, which include:

_ For simplicity of transactions and cheaper transaction and withdrawal fees, BUSD offers many blockchain protocol versions. On Binance or through the Binance Bridge service, users can easily switch between BUSD ERC20, BUSD TRC-30, BUSD BEP2, BUSD-BEP20, and other versions.

_ BUSD transactions are extremely quick, extremely flexible, and available to anybody, regardless of location, with the exception of nations where crypto-activity is completely prohibited.

_ Because of its durability, it is the strongest stable coin to utilize in liquidity pools and yield farms.

_ It has a lot of liquidity, which allows for quick transactions with little or no delays.

_ Its market capitalization is around $18 billion.

_ It is the preferred stable currency in decentralized finance activity.

_ It has an actual value of one US dollar and is fully backed by cash.

How to Start Trading BUSD-Margined Futures on Binance?

BUSD-M futures trading is as simple as it gets, requiring only a futures trading account to get started. To buy or sell BUSD-M Binance Futures contracts, follow these five simple steps:

Step 1: Create your Binance futures trading account by clicking here. You should utilize 2FA authentication to deposit funds into your Binance Futures account so that you can start trading on Binance Futures without delay.

Step 2: Deposit money Binance futures accepts a wide range of cryptocurrency assets as collateral.

Step 3: Select your preferred BUSD-M future contract. Under the “USD-M Futures” option, choose BUSD Perpetual.

Step 4: You must pick the proper leverage for your BUSD-M futures contract. The leverage is set at 20x by default. You may, however, adjust their leverage.

Step 5: You can make orders according to the many forms of orders available on Binance Futures. For your first BUSD-M futures contract, you can use a buy-market or a buy-limit order.

How to Use the Multi-Assets Mode to Trade BUSD-M Futures?

Multi-asset mode trading of BUSD-M contracts can give more cost-effective benefits. If you own BUSD, you can save money on both the margin and spot markets, as well as the BUSD-M contracts.

You may also trade USDT-M contracts without having to convert them to USDT using Multi-Asset Mode. As a result, you’ll be able to open positions in the BUSD-M and USDT-M futures whenever market conditions alter.

The Multi-Asset Mode allows you to trade in two ways on the same principal cryptocurrency, as you can trade in USDT or BUSD. For example, if you believe that BUSD/BTC would suffer a loss due to a future drop in BTC prices, you may short a USDT/BTC contract to counter the possible loss.

If you own a USDT, you may save money on fees by trading BUSD-M futures, which provide maker rebates and lower fees. You may immediately decrease transaction fees and enjoy more income.

Using Mock Trading to Sharpen Trading Skills.

You may quickly use Binance Futures’ Mock Trading to sharpen your trading abilities. This testnet environment is a practice trading platform for trading live cryptocurrency markets in real-time with no financial risk.

Step 1: To access Mock trading, go to Binance Futures and click on the option to log in or sign-up to create a new account on Binance Futures.

Step 2: Select “Profile,” then “Mock Trading.” Mock trading may be accessed by clicking on the Profile tab.

Step 3: Continue to create a Binance Futures testnet account with the same credentials as your Binance account. This account will have a simple starting balance of 3,000 USDT to allow you to take advantage of all of the fascinating features that Binance Futures has to offer. In a testnet environment, you may simply manage your digital portfolio and experiment with different risk levels by employing leverage and taking profit and stop-loss orders.

Step 4: When you’re ready to try your trading skills on actual Binance Futures, select the option “Back to Live.”

Step 5: Go to Faucet, select Coin, and then Add asset to add testnet funds to your Mock Trading account. You may check your test balance and practice trading with different risk levels to improve your skills.

More information on BUSD-M futures and multi-assets mode may be found here:

Have you signed up for Binance Future yet? You’re missing a lot of cryptocurrency opportunities. Simply click HERE to join!

You may buy cryptocurrency using Binance funds through a bank transfer, credit card, or through other Binance P2P merchants.

P2P Buy/Sell


BUSD is a useful instrument and a reliable investment for investors and traders. Its audited reserves and controlled status stored by trustworthy monitoring authorities provide the coin with a higher level of reliability. If you often utilize the Binance Chain, BUSD is an excellent stablecoin to use with various projects.

Trading has been easier, safer, and more pleasant with the launch of the BUSD. We’ve established that BUSD is a Binance and Paxos-created stablecoin. BUSD is not just any stable currency; it is backed by the United States government and has the same value as the US dollar.

BUSD-margined contracts have made trading easier while lowering the risk of losing money. Their margins are in BUSD, and they are settled in BUSD as well.




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