Binance adds support for new perpetual XRP and Ethereum Classic contracts

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Binance Futures, a platform for cryptocurrency futures and derivatives of the exchange house Binance, is providing support for the XRP (Ripple) and Ethereum Classic (ETC) perpetual contract exchange system.

Both new Binance products, under the name of XRPUSD for XRP and ETCUSD for Ethereum Classic, are launched on the framework of the celebration of the first anniversary of Binance Futures, an Exchange web interface, launched on September 13, 2019.

Perpetual contracts enter into circulation in the market, pairing against the stablecoin USD Coin (USDC). This means that the margin, profit, and loss must be paid or received in USDC, while XRP and ETC serve as collateral.

In this way, platform users are offered a new mechanism for open operations, in long or short positions, based on a leverage of up to 75 times, according to the company’s statement.

In its Press release Binance recognizes that leveraged transactions are very risky, so it warns users about the potential for both profit and significant losses. “Bear in mind that, in the event of extreme price movement, there is the possibility that the entire margin balance in your futures portfolio will be liquidated,” she says.

Futures contracts on Binance

It is worth adding that perpetual contracts are a form of futures contracts based on crypto assets. They present slight differences in their trading mechanism with respect to futures, related to the fact that there is no specific expiration or settlement date. In this case, it is the customer who decides when to leave.

As for the XRP derivatives offering, it was introduced on the platform Binance Futures in January of this year, a fact that made the exchange the first to add a perpetual contract for this cryptocurrency, although he faced the stablecoin tether (USDT). Weeks later, he implemented a similar product for Ethereum Classic.

Binance had announced the incorporation of a perpetual contract with the stablecoin Tether (USDT). Source: Binance

Subsequently, in May 2020, added option contracts for XRP and Ethereum (ETH), providing traders the right to buy or sell the assets at a certain price for a specific period of time.

The platform has been offering perpetual futures contracts with USDT, in addition to leveraged tokens, since the first months of this year. In addition to the quarterly futures contracts, in the last year a service called Binance Options, which allows short-term swap deals, which are settled American-style.

The company incorporates more tools for traders, allowing you to customize the margin or predetermine particular addresses for holdear, according reported CriptoNoticias in a recent article. In April 2020, he introduced options trading. At the end of last month, it launched a new product that allows betting on the rise or fall of the decentralized finance ecosystem (DeFi).

According to the most recent CryptoCompare report, Binance was one of the leading exchanges last August, in terms of monthly derivatives volumes. According to him ranking of the study, ranked number 3, after OKEx and Huobi.

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