Binance, a centralized custodial exchange, has launched futures trading for the NEO/USDT market, which allows users to leverage their trades up to 50x. The futures trading market for NEO/USDT opened on Monday, February 17th.
The futures trading platform allows users to go long, which is where the trader buys a futures contract with the expectation that it will rise in value in the future. Conversely, the platform also allows the trader to go short, which is where they bet on an asset’s price to decline in the future.
Binance’s futures trading is highly leveraged, which incorporates “a sophisticated risk engine and liquidation model.” The NEO/USDT futures will be offered by a perpetual contract, which has no expiration date, so traders can keep their contracts open as long as they please.
As with the traditional Binance exchange platform, users can set stop-loss orders, take-profit-limit orders, and other options to automatically take place, even if the user is away from the platform.
Binance noted: “Futures trading is a highly risky endeavor, with the potential for both great profits and significant losses. Please be aware that in the event of extreme price movement, there is a chance that all margin balance in your futures wallet may be liquidated. When you are liquidated, you will pay additional fees.”
The full announcement can be found at the link below: