So many features have been brought to the Binance ecosystem to enable users trade easily with less risk.
If you are a good trader or a newbie, Binance BUSD-Margined future Contracts has been unleashed to increase your versatility in trading, with the advantages and uniqueness of this great feature, traders will see lots of reasons to choose BUSD-Margined contracts over available others.
First of all, lets discuss about BUSD.
WHAT IS BUSD
Binance USD (often called by its symbol BUSD) is a regulated stable coin pegged to the U.S. dollar and approved by the New York State Department of Financial Services(NYDFS).
BUSD is called a stable coin because it was originally designed to always be worth $1.00, maintaining $1.00 in reserves for each BUSD issued.
It is 100% backed by U.S. dollars held in FDIC insured U.S. banks, therefore for every unit of BUSD, there is one U.S. dollar held in reverse (1:1 ratio with U.S. dollar).
WHAT IS A BUSD-MARGINED CONTRACT
BUSD-Margined contracts tell us about crypto contracts that use BUSD as a margin for position opening, profit and loss settlement (P&L).
In this case opening a trade requires you having BUSD as your available margin, therefore BUSD margined contracts are quoted and settled in BUSD only.
Examples of BUSD-MARGINED Contracts includes; BTC/BUSD, BNB/BUSD.
BUSD-MARGINED CONTRACTS AVAILABLE ON BINANCE FUTURES
After explaining BUSD-Margined Contracts above, it will be nice to get acquainted with the available BUSD Pegged Contracts on Binance Futures.
BUSD linear futures are quoted and settled in BUSD and are found in the Binance futures interface when you click on BUSD Perpetual option.
Currently, the available BUSD-Margined Futures contracts includes; BTC/BUSD, BNB/BUSD, ETH/BUSD, XRO/BUSD, DOGE/BUSD etc.
Get your futures account and start trading below.
WHY TRADE BUSD CONTRACTS ON BINANCE FUTURES
You might be wondering, why BUSD contracts on futures, the sweet answer is here for you.
Trading BUSD contracts on futures brings about new perspectives and strategies on how to trade thereby giving crypto traders top advantages.
The following are the advantages of BUSD Futures Contracts.
- Trading fee discounts and maker abatement
Trading BUSD-margined contracts incurs lower fees. For example trading ADA/BUSD, BTC/BUSD will incur lower fees unlike other available contracts.
meanwhile, discount will be valid till September 7th, 2021.
The fee structure for all VIP levels is given below;
- Easy to calculate Profits and Loss (P&L)
BUSD as said earlier is pegged to U.S. dollar which means that, 1 BUSD will always be equal to $1 USD (1:1).
Therefore, it will be easy to calculate your fiat money trading BUSD futures contracts.
For example, checking the exchange rate of 1USD to the value of your desired currency (Fiat money) can be confidently used to determine your fiat money in BUSD since BUSD (Binance USD) is a regulated stable coin pegged to the U.S. dollar.
For example, Vincent’s fiat currency is naira and he made a trading profit of 500BUSD.
how much naira does vincent have in 500BUSD will be calculated by converting 500usd in naira equivalent.
As at the time of this post, 500naira=500usd, therefore 500naira = 1BUSD since 1busd = 1usd, therefore vincent has 500*500= 250,000naira in his port folio, easy calculation.
- No conversion Charges
Converting your assets to BUSD is free of charge, no extra charges are incurred when converting from either USDT to BUSD or other assets to BUSD.
In summary, trading BUSD margined futures contracts is of great gain and it induces versatility.
Feel free to create your binance futures account below;
Disclaimer: Cryptocurrencies are volatile, speculative and encompass significant risks, their actions are unpredictable and past performance doesn’t guarantee future performance, therefore you are advised to always do your own research(DYOR).