Trading stocks like Tesla used to mean dealing with rigid market time zone and tedious brokerage accounts. On Binance, Tesla is traded as a USDT-margined perpetual contract. This literally means that while the price tracks the real value of Tesla (TSLA) shares are listed on the Nasdaq exchange and the settlement is conducted in the stablecoin USDT.
The digitalization of equity trading also offers several improvements over the old pattern of trading stocks. And some of the benefits are;
- Market Access (All-round Hours)
On the Nasdaq exchange, a traditional stock market which operate during limited business hours and close on weekends. On like Binance Futures, the TSLAUSDT contract trades 24 hours a day, and 7 days a week. This trades allows users to react to market movement news.
- Lower Entry Barriers
On like the traditional markets which buys full shares of high value stocks can be expensive for retail traders, the Binance Future allows fractional trading. This means that the TASLA contract is set at just 0.01 TSLA, making it accessible to traders with little amount of capital.
- Leverage
It’ll interest to know that Future contracts allows traders on the exchange to gain exposure to larger positions with a smaller amount of upfront capital. As of early February, Binance Future offers leverage that is up to 5times for the TSLAUSDT contract.
This means that a trader can potentially operate $500 worth of TASLA contract with roughly $100 of margin.
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