Binance launched the YALAUSDT and CARVUSDT perpetual contracts with a maximum leverage of 50 times.
The exchange announced that on August 8, at 00:30 Beijing time, it will officially open trading for two new contracts in the perpetual market, previously listed on the Alpha market.
MAIN CONTENT
Binance launches the YALAUSDT and CARVUSDT perpetual contracts.
The contract allows high leverage up to 50 times.
These two tokens were previously listed on the Alpha market.
What does Binance announce about the YALAUSDT and CARVUSDT perpetual contracts?
Binance announced the launch of perpetual contracts for two tokens YALAUSDT and CARVUSDT at 00:30 on August 8, Beijing time (UTC+8). This is a step to expand the derivatives contract portfolio of the exchange to increase diversity for investors.
Information from Binance shows that these contracts apply a maximum leverage of up to 50 times, providing significant support for traders with high-leverage trading strategies. The previous listing on the Alpha market helps these two tokens have a certain level of liquidity and reliability.
How does 50x leverage affect perpetual contract trading?
50x leverage allows investors to open positions with a small amount of capital but increases the potential for profit or loss up to 50 times compared to the invested capital. This is suitable for experienced traders who take advantage of short-term price fluctuations in the highly volatile cryptocurrency market.
However, the risks also increase as small price fluctuations can lead to liquidation if capital is not managed well. Binance has implemented measures to control risks such as an automatic liquidation system and limiting over-leveraged trades, contributing to investor protection.
Binance stated: “The launch of the YALAUSDT and CARVUSDT perpetual contracts with a maximum leverage of 50x expands investment opportunities for users while enhancing flexibility and diversity in trading strategies.”
Quoted from the official Binance announcement, August 7, 2024
Where have YALAUSDT and CARVUSDT traded before moving to perpetual contracts?
These two tokens were previously listed on the Alpha market before being introduced as perpetual contracts – one of the experimental markets provided by Binance. This helps investors familiarize themselves with the liquidity and volatility of the two tokens before participating in derivative products.
The testing on the Alpha market also helped Binance evaluate the performance, stability, and popularity of the tokens before widely announcing to all users on the main exchange, ensuring safety and effectiveness in trading.
Important considerations when trading perpetual contracts with high leverage?
Trading high-leverage perpetual contracts requires investors to have strict risk management experience, know how to use tools like stop-loss orders, and manage positions reasonably to avoid quickly being liquidated due to significant price fluctuations.
Understanding the operating mechanisms and costs incurred, such as funding fees and trading fees, will help optimize profits while minimizing risks. Investors should thoroughly research information before participating in leveraged trading products to ensure capital safety.
Frequently Asked Questions
What is a perpetual contract?
A perpetual contract is a type of derivative contract that allows trading without an expiration date, popular in the cryptocurrency market to take advantage of leverage and profit from price fluctuations.
What does 50x leverage mean?
A 50x leverage allows investors to open positions 50 times larger than their actual capital, increasing potential profits/losses in accordance with the capital invested.
Where have YALAUSDT and CARVUSDT traded before?
Both tokens were listed on the Alpha market before officially launching perpetual contracts on Binance.
What are the risks when trading perpetual contracts with high leverage?
It is possible to lose all capital or be liquidated quickly if the price goes against the position due to strong volatility and lack of position control.
How to reduce risk when using leverage?
Investors should use stop-loss orders, manage capital effectively, and only trade with capital they can afford to lose.
Source: https://tintucbitcoin.com/yalausdt-carvusdt-co-hop-dong-moi/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
