04 - 24/7 Trading: What Does It Actually Mean? Traditional stock markets operate within defined trading sessions. bStocks work differently. Because they are blockchain-based tokenized securities, they can be traded on Binance's Spot market 24/7, including weekends. That means you don't have to wait for the traditional market to reopen just to trade your position. The important distinction: 24/7 trading does not mean the underlying stock market is open 24/7. It means the bStock itself can be traded continuously on Binance, subject to applicable product and market conditions. So the experience changes from: Traditional market hours ↓ Market closes ↓ Wait for the next session To: On-chain market access ↓ 24/7 trading Different infrastructure. Different trading experience. Learn more about bStocks on Binance Academy:
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Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
A traditional share can represent direct ownership in a company through the relevant market and custody structure.
bStocks are different.
They are classified as tokenized securities and provide economic exposure to the underlying security through a blockchain-based structure.
So owning a bStock does not mean:
❌ You directly own a share in the company ❌ You receive shareholder voting rights ❌ The bStock itself becomes the company’s stock
Instead, bStocks are designed to bring traditional securities into an on-chain format.
Same underlying economic reference.
Different legal and technical structure.
That’s why the word “tokenized security” matters.
Explore the full explanation on Binance Academy:
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Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
You’ll often see this phrase when talking about bStocks:
“Backed 1:1.”
But what does that actually mean?
For each bStock token issued, there is a corresponding real U.S. share held in custody.
So the structure is designed around:
1 bStock → 1 corresponding underlying share
The important part is the backing.
The underlying shares are held with a regulated custodian, while Binance also provides a Proof of Collateral page where the backing can be checked.
This is different from simply creating a token that follows a stock price.
The blockchain token has an underlying share supporting it.
That’s one of the core ideas behind bStocks.
Want the technical details?
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Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
What if traditional stock exposure could exist on-chain?
That’s the basic idea behind Binance bStocks.
bStocks are tokenized securities available on Binance.
Each bStock is backed 1:1 by a corresponding real U.S. share held with a regulated custodian.
But there’s an important distinction:
bStocks are not stocks.
They do not give holders direct ownership of shares in the underlying company.
Instead, they provide economic exposure through a blockchain-based structure.
So think of it as:
Traditional security ↓ Tokenization ↓ Blockchain-based bStock
Same underlying economic reference.
Different structure.
And that distinction matters.
Learn more about how bStocks work on Binance Academy:
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Risk Disclaimer: Crypto assets carry risks. This is not financial advice. bStocks assets are not stocks and do not represent direct ownership of the underlying company.
Here's where TradFi gets interesting. An ETF can already contain a basket of assets. For example, an index ETF can give exposure to multiple companies through one fund. Now add another layer: ETF-linked perpetuals. You're no longer buying the ETF itself. You're trading a perpetual contract linked to the ETF's price. So the structure looks like this: Companies / assets ↓ ETF ↓ ETF-linked perpetual ↓ Your trading position That means there are two things to understand: 1. What the ETF represents. 2. What the perpetual contract represents. The perpetual gives you price exposure to the ETF. It does not mean you directly own the ETF. Binance's ETF-linked perpetual contracts are USDT-settled and available 24/7, subject to product availability and applicable restrictions. Binance Academy One underlying market. Multiple layers. Understanding those layers is financial literacy.
Here's a distinction every TradFi trader should understand: Price exposure is not the same as ownership. If you buy a company's stock through the relevant brokerage structure, you're acquiring shares in that company. A stock perpetual is different. You're trading a derivative designed to track the stock's price. That means: • No direct ownership of the underlying shares. • No shareholder rights from owning those shares. • No need to hold the stock through a traditional brokerage account. Instead, you're taking a position on the price movement of the underlying stock. And because it's a perpetual contract, leverage and liquidation can become part of the equation. So when you see: "Tesla perpetual" Don't automatically read it as: "Tesla stock." The name tells you the underlying asset. The contract tells you what you're actually trading.
Two products can both give you exposure to gold... But they can represent completely different things. Tokenized gold: A digital token represents ownership of, or a claim connected to, physical gold held by a custodian. Depending on the product, redemption for physical gold may be available. Gold perpetual: A derivative contract tracks the price of gold. You don't hold the physical metal. You don't store the gold. You don't receive a gold bar. You're trading price exposure through a perpetual contract. So: Tokenized gold ≠ Gold perpetual. One represents a digital claim connected to physical gold. The other is a derivative designed to track gold's price. Same underlying commodity. Different financial instruments. And that difference matters. Always understand what the product actually represents before using it.
Why does a perpetual contract need a funding rate? Because it doesn't have an expiration date. A traditional futures contract eventually expires and settles. A perpetual doesn't. So it needs another mechanism to help keep its price aligned with the underlying asset. That's where funding comes in. When the funding rate is positive: Long positions pay short positions. When the funding rate is negative: Short positions pay long positions. The payment happens between traders — it's not simply a trading fee charged by Binance. Think of funding as a balancing mechanism. If the perpetual trades above the underlying price, funding can encourage the market to move back toward it. If it trades below, the mechanism works in the opposite direction. So when you open a perpetual position, don't look only at: "Will the price go up or down?" Also understand: "What is the funding mechanism doing to my position?"
A TradFi perpetual sounds complicated. But the core idea is simple: You are trading a contract that tracks the price of a traditional financial asset. That asset could be: Gold. Silver. A stock. An ETF. An index. The important part? You are not buying the underlying asset itself. A TradFi perpetual is a derivative. So if you trade a stock perpetual, you're trading exposure to the stock's price movement — not buying the company's shares. And because it's a perpetual contract, it doesn't have a traditional expiration date. That also means you need to understand things like: • Leverage • Funding • Liquidation • Mark price • Settlement The asset name tells you what the contract tracks. The product structure tells you what you're actually trading. Understand the difference before you trade.