5th March, 2019
We are pleased to announce the launch of futures contracts on Binance Coin (BNB). Monthly futures on the BNB-BTC pair with up to 20x leverage are now available for trading on Delta Exchange. These contracts will be quoted, margined and settled in Bitcoin.
BNB has been one of the top performing coins this year. There is a strong demand amongst traders to trade BNB with leverage. We received multiple requests to make trading available for futures on Binance Coin and in response to that we have decided to open trading of monthly futures on Binance Coin (BNB).
Traders’ interest in BNB should continue given the string of catalysts that’s lined up for the next few months. A coin burn event, which will reduce the supply of BNB, is set to occur sometime in the month of April. We expect traders to build levered positions ahead of the event. Besides this, imminent launch of BNB DEX and a potential recovery in crypto trading volumes are some other drivers that could result in continued activity in Binance coin and sustained demand for BNB futures form trading community.
BNB has very a large percentage of long term HODLers. The coin ecosystem and periodic burns provide a upward drift to the BNB price and lay strong incentives for HOLDers to maintain their positions. The recent run-up however has been very sharp with BNB returning almost 100% in 2019 YTD. We believe that at these prices some of the HODLers will look to lock profits on their positions using futures. A short futures position will protect against any pull back or price volatility without needing to liquidate BNB holdings.
We expect these conflicting interests for speculators and hedgers to give rise to a liquid two-way market in BNB futures.
The futures contracts launched on BNB are March expiry contracts. These contracts will expire on 29th of March, the last friday of this month. The contracts for the following months will be made available for trading in the last week of March.
Delta Exchange is a marketplace for trading of cryptocurrency derivatives. The exchange currently has futures listed on bitcoin (BTC), ether (ETH), ripple (XRP), stellar lumens (XLM) and binance coin (BNB), that allow up to 100x leverage and are settled in USDC or BTC. The founding team of Delta Exchange comes from Wall Street firms such as Citigroup & UBS and has raised money from the likes of Softbank and Sequoia for their prior entrepreneurial ventures.
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