What you should know about BUSD-Marginated Futures Contracts
Users can now diversify their stable coin exposure between BUSD and USDT thanks to the introduction of BUSD-margined contracts. If you have a lot of stablecoins, splitting them between BUSD and USDT might be a smart idea for diversification, convenience, and overall trading strategy.
What is BUSD?
Binance USD (BUSD) is a stablecoin backed and collateralized by United States dollars. It allows its users to transact with other digital and blockchain-based assets while reducing the risk of volatility.
The BUSD was established with the goal of enhancing the decentralized financial ecosystem by utilizing a frictionless global network that allows digital assets to increase transaction accessibility, flexibility, and speed.
Furthermore, BUSD is one of only three stablecoins certified by US regulators so far, the other two being GUSD, issued by Gemini Trust Company, and PAX, issued by Paxos.
What are BUSD-Margined Contracts, and how do they work?
Users may simply compute their returns in fiat currencies using USDT-margined contracts, which are linear futures products quoted and paid in USD stablecoins. The use of stablecoins (USDT or BUSD) as collateral across various futures contracts (i.e., against BTC, ETH, and other cryptocurrencies) removes the need to convert to other cryptocurrencies and saves money on conversion costs.
Traders that trade contracts with a BUSD margin will benefit from cheaper costs and maker rebates. Any trading pairings that contain BUSD, such as ETH/BUSD or BTC/BUSD perpetual contracts, are eligible for the fee reduction.
CONTRACTS WITH A BUSD MARGIN ARE AVAILABLE ON BINANCE FUTURES.
When you click on the BUSD Perpetual option in the Binance futures interface, you’ll see BUSD-Marginated future Contracts.
BTC/BUSD, BNB/BUSD, ETH/BUSD, XRO/BUSD, DOGE/BUSD, and so on.
Trading BUSD-Margined Contracts on Binance Futures Has Its Advantages.
- Returns in USD are easy to calculate
Stablecoin values are tied to the price of a fiat currency, as previously stated. The top three most frequently used stablecoins are linked to the US dollar, which means that 1 BUSD should always equal $1 USD. In terms of fiat money, a BUSD-Margined futures deal will be simple to compute. If a trader prefers not to compute in US dollars and instead uses BUSD, they may look up the exchange rate of 1USD to the value of their preferred currency and be certain that BUSD maps to the same rate.
2. Fee reductions and Maker rebates are available
Traders that trade contracts with a BUSD margin will benefit from cheaper costs and maker rebates. The fee reduction is valid for all trading pairings that contain BUSD, including ETH/BUSD perpetual contracts and BTC/BUSD perpetual contracts, to mention a few. The discount will be in effect until September 7th, 2021. The following is the pricing structure for all VIP levels during the discount period:
-0.0100 percent maker
0.0170 percent taker
3. Versatility
The BUSD is a global settlement currency that allows traders to simultaneously trade various contracts (BTC, ETH, BNB, and so on) This implies that any contract may be initiated in a trader’s preferred crypto and settled in a stablecoin on the backend.
About Binance Exchange
Binance is the world’s largest cryptocurrency exchange by trading volume. Binance Exchange serves users from over 180 countries and regions, with an average daily trading volume of more than $2 billion. Millions of consumers around the world rely on Binance Exchange for its security, speed, and wide range of innovative features, including Spot & Margin trading, Futures & Options trading, Savings & Staking services, support for fiat gateways, and more.
Disclaimer: Cryptocurrencies are volatile, speculative, and involve considerable risks; their actions are unpredictable, and previous performance does not guarantee future results, therefore you should always conduct your own research (DYOR).
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