Changpeng Zhao, the founder and CEO of Binance, has presented today upcoming features on his crypto exchange that are yet to come. Of all the new features the biggest news is the launch of Bitcoin futures on the platform.
CZ announced this during the Asia Blockchain Summit in Taipei, Taiwan. He stated that:
“Binance will be launching a futures platform very soon. I don’t have the exact date yet. The simulation test version will be live in a few weeks”
20x Leverage – Altcoins Could Follow
The platform will allow then to go long and short on Bitcoin with a leverage of up to 20. At first, this will only be feasible on Bitcoin but contracts for other cryptocurrencies will likely follow. CoinDesk could also find out from a spokesperson of Binance that margin trading will launch on the 11th July. About a week later futures trading will be tested on Binance.
Futures Shortly Explained
Future contracts offer traders more speculative options to trade Bitcoin. They are basically a contract to buy/sell an asset to a certain price at a certain time. Both sides obligate themselves to conduct the contract, no matter if the expected price was met or not. This type of trading is extremely risky. Especially with an asset as volatile as Bitcoin.