Coinbase Advanced is set to expand its derivatives offerings with the introduction of BNB perpetual contracts (BNB-PERP). Trading for this new pair will commence on April 3, 2025, at 09:30 UTC or shortly thereafter, as confirmed by Coinbase Traders.
Key Features of BNB Perpetual Contracts
- 24/7 Trading: Unlike traditional futures, perpetual contracts have no expiry, enabling continuous trading.
- Leverage Options: Traders can amplify positions (exact leverage tiers to be announced by Coinbase).
- USD Settlement: Contracts are settled in USD, simplifying profit/loss calculations.
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Why This Launch Matters
- BNB’s Growing Ecosystem: As Binance Coin (BNB) powers transactions across Binance Smart Chain and decentralized applications, its derivatives market adds liquidity and hedging opportunities.
- Coinbase’s Institutional Push: Advanced caters to pro traders with lower fees and advanced charting tools, signaling heightened competition in crypto derivatives.
Trading Tips for BNB-PERP
- Monitor Funding Rates: Perpetual contracts use periodic payments (funding rates) to anchor prices to the spot market. Positive rates mean long positions pay shorts, and vice versa.
- Risk Management: Use stop-loss orders and avoid over-leveraging, especially in volatile conditions.
FAQ
Q: What are perpetual contracts?
A: They’re futures-like instruments without expiry, settled continuously based on funding mechanisms.
Q: How does Coinbase Advanced differ from Coinbase Pro?
A: Advanced merges Pro’s features with derivatives trading, catering to institutional and experienced retail traders.
Q: Will BNB-PERP support cross-collateralization?
A: Details pending official release, but Coinbase typically allows collateral flexibility.
Final Thoughts
This launch underscores Coinbase’s commitment to diversifying its crypto offerings. Traders gain exposure to BNB’s price movements without holding the asset directly.
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Note: Trading derivatives involves high risk. Ensure you understand the product before participating.