Binance Set: Launch Future NEO / USDT With Up to 50x Leverage

Big crypto-currency exchange Binance has revealed it is about to launch a new NEO crypto-asset futures product monitoring.

The NEO / USDT futures will be released on Feb. 17 according to the announcement published on Feb. 16 and traders will be able to select leverage between 1x and 50x. The fees levied by the exchange on the contract’s trades in question are an initial margin rate of 2%, 1% base maintenance margin rate and a liquidation fee of 0.5%.

What is NEO?

The knowledge page Binance dedicated to NEO states that it is a community-driven open-source platform. That uses blockchain, smart contracts, and digital identities to digitize and automate asset management. The website also states that the blockchain was first released in 2016. And is scheduled to update to its software’s third version (Neo3) this year.

A Binance spokesman told that after analyzing liquidity on its spot market. The company decided to create a NEO-based futures contract. In addition, the spokesman also spoke about future growth. Aiming to add 20 – 30 trading pairs to Binance Futures and calling the most liquid 20 or 30 pairs in the first place.

Meanwhile, the NEO price has lost 2.81% of its value over the 24 hours to press time. And is currently worth $15.04, after starting the day at $16.67.

NEO price 7-day chart. Source: Coin360

Were futures a sight for the speculator?

Future contracts often have particularly high leverage and allow speculation on things otherwise hard to trade. One example of how futures can enable such activity is the contract that cryptocurrency derivatives exchange FTX launched earlier this month. Which allows traders to bet on President Donal Trump’s reelection in 2020.

Just a couple of days later, FTX also announced plans to launch five additional 2020 presidential election-based futures products. Including a Bernie Sanders (BERNIE) futures trading product, as well as futures on Joe Biden (BIDEN), Elizabeth Warren (WARREN), Pete Buttigieg (PETE) and Mike Bloomberg (BLOOMBERG).

Source: Cointelegraph.com

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