BULLS & BEARS
FTX exchange is a crypto trading platform that offers crypto derivative options to its users. Currently it has Futures, Option, Move, Leveraged and Spot trading available. An agreement of both Binance and FTX a few weeks back has led the listing of four of FTXs leveraged tokens:
- 3X Long Bitcoin Token (BULL)
- 3X Short Bitcoin Token (BEAR)
- 3X Long Ethereum Token (ETHBULL)
- 3X Short Ethereum Token (ETHBEAR)
As the names suggest, the bull tokens capitalize on the rising price of Bitcoin (BTC) and Ether (ETH), while the bear tokens reap profits when the market sees a turn down. All tokens are designed for 3x leverage, meaning they give 3 times the results of BTC or ETH. For example, a 1 percent increase in BTC’s price would mean BULL, the BTC leveraged token, will increase by 3 percent. A drop in price of BTC would see the BULL token fall 3 times as much too.
Like the long tokens, the short tokens also offer 3X leverage, but since they are short, they have an inverse relationship with movement of BTC and ETH. A drop in BTC, for example, would mean 3 times the same percentage move for BEAR, but in the opposite direction.
Binance had announced nearly a month back that it had acquired a large portion of the FTX derivative exchange, with long positions purchased in the FTX’s native token, the FTT. Both the platforms had pledged to work together towards a mutually beneficial goal to ensure higher quality and profitability to their users.
Binance Trading Benefits
The FTX tokens listed on Binance are ERC20 and BEP2 compliant digital tokens that allow traders to multiply their potential profits by using their leveraged nature. In any normal leverage trading, the user must have an advanced and in depth knowledge of the leveraged market. The trader must understand the risk and management of collateral, forced liquidation, margin and other aspects of leveraged trading.
However, with the four leveraged tokens, Binance users need not worry about all of these. Users and traders at the largest crypto exchange can trade the tokens just like any other they do. This means that traders can increase their potential profits (and incur losses) by three times as would BTC or ETH.
All the FTX tokens are listed and trading is live on Binance, with trading pairs against Tether (USDT) and Binance US Dollar (BUSD) for the leveraged assets.