If you’ve purchased or traded Crypto with Binance, you’ll likely have already come, across Binance USD. The BUSD token is common among the trading pairs Binance offers on its exchange. In short , BUSD acts as a digital version of the U.S. dollar and is pegged at it’s value.
What is BUSD?
Binance USD (BUSD) is a new USD – denominated stable coin approved by the New York State Department of Financial Services [NYDFS] that will be launched in partnership with Paxos and Binance.
BUSD is a regulated , fiat -backed stable coin pegged to the U.S. dollar. For every unit of BUSD , there is one US dollar held in reserve . In other words, the supply of BUSD is pegged to the U. S. dollar at a 1:1 ratio.
Holders can swap their tokens for fiat and vice vests. Paxos, the projects owner, releases monthly audits of BUSD’S reserves. As a stable coin , BUSD is designed to maintain a stable market value .
For newcomers it’s not always obvious why traders and investors hold BUSD . The role of BUSD and other Stable coins is, however an essential part of the crypto ecosystem.
Binance USD offers three key attributes to transactions, which includes
WHAT IS A Binance USD – MARGINED CONTRACT?
BUSD- margined Contracts are a type of linear futures product quoted, collateralized , and settled in BUSD, making the entire transaction fairly easy to calculate into USD [or other Fiat Currencies] . This makes BUSD – margined Contracts just as intuitive and easy to use as USDT – margined Contracts.
Therefore, users need not spend additional efforts learning how to use BUSD -margined Contracts offer the following Characteristics.
Also Read: What is multi asset mode?
- Settlement in BUSD; Contracts are denominated and settled in BUSD . A versatile settlement Currency across the BUSD – margined futures product line.
- No expiration date, you can hold positions without an expiry date and do not need to keep track of various delivery months , unlike traditional futures contracts.
- Clear Pricing Rules; each futures Contract specifies the base asset’s quantity delivered for a single contra, also known as “Contract unit” . For instance, BTC / BUSD, ETH / BUSD, and BNB/ BUSD futures Contracts represent only one unit of its respective base asset , similar to spot markets. BUSD – margined futures provides Crypto – Futures traders with the new perspectives and strategies on how to trade.
- Funding rate; Every eight hours, funding rates are paid either to the long or to the short based on differences with the spot right. However, it prevents lasting divergence in the price of the spot and perpetual Contract markets .
STRATEGIES ON HOW TO TRADE WITH Binance USD;
- Enjoy Fee – Discounts and Maker Rebates
- Ease Of Calculating Returns in USD.
WHAT ARE THE BUSD – MARGINED CONTRACTS available on BINANCE FUTURES
Binance Futures has launched BTC BUSD perpetual Contracts, Users will be able to select leverage. The BTC BUSD perpetual Contracts are BUSD – margined futures Contracts that use BUSD as collateral, quoted and settled in BUSD and BNB / BUSD.
After explaining BUSD- margined Contracts above, it will be of great profit to get involved with the available BUSD pegged Contracts on Binance futures.
Where can I find BUSD Margined Contracts on Binance?
If you are a newbie, then you can easily find the BUSD Margined Future Contract with below step.
BUSD Marginal Future Contracts are found in Binance futures interface when you click on BUSD perpetual option.
- ETH / BUSD
- XRO / BUSD
- DOGE/ BUSD
- BTC / BUSD
- BNB / BUSD etc…
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