Binance will add leveraged futures trading to its cryptocurrency exchange platform within weeks. That’s according to a keynote speech delivered by CEO Changpeng Zhao at the Asia Blockchain Summit on Tuesday.
The new feature will allow users to open long and short positions on bitcoin’s price movements with up to 20x leverage.
The market for bitcoin derivatives and leveraged trading is clearly exploding. As CCN reportedyesterday, crypto derivates platform BitMEX recorded $1 trillion trading volume in the last 365 days. Binance is hoping to muscle in on this demand for high-leverage trading.
A game changer
In two short years, Binance has established itself as the largest cryptocurrency exchange by trading volume. By adding futures trading, Binance expands its dominance over rival exchanges. Users can not only get exposure to bitcoin, but also bet against its price movements, known as shorting.
The new features will add significant liquidity to the bitcoin trading ecosystem and draw yet more sophisticated traders. Changpeng Zhao, better known as CZ, said the futures trading platform will start testing in the coming weeks, initially on BTC.
Crypto exchange types:
1/Derivatives: margin, swaps, futures (Bitmex, Bybit, Deribit)
2/Regulated: BTC & major alt focus, fiat on-ramps (Coinbase, Gemini)
3/Unregulated: Alt focus (Binance, Kucoin)
Binance adding futures & becoming only exchange to be in every category. https://twitter.com/binance/status/1145920008096141312 …
.@cz_binance just announced that #Binance will offer futures contracts in his keynote at the @aba_summit! #ABS2019 #Taipei #Futures
As trader and analyst Luke Martin explains, this move expands Binance’s authority in the exchange world. The crypto giant has recently launched fiat on-ramps, futures trading, and a decentralized exchange. Binance is cornering the market in every niche.
Bitcoin futures volumes at record highs
The timing couldn’t be better for CZ and Binance. Bitcoin futures volumes at the Chicago Mercantile Exchange (CME) hit record highs in consecutive days last week. While leading crypto derivatives platform BitMEX boasted $16 billion trading volume in one day.
The demand for bitcoin futures trading is racing. As the leading crypto exchange in the industry, Binance is likely to add fuel to the fire.