Binance Futures will add two perpetual contracts linked to Hong Kong-listed shares of BYD and Lenovo on September 7, giving eligible users a way to take leveraged positions on the companies through the exchange’s derivatives platform. The contracts, BYDUSDT and HK0992USDT, will reference BYD’s H shares and Lenovo Group, respectively, and will both be settled in USDT. Binance said the products will support up to 20x leverage and will trade around the clock. The launch adds individual equities to Binance’s existing range of perpetual contracts tied to traditional financial assets. Unlike buying the underlying shares, however, the new products provide traders with exposure to price movements via derivatives and do not represent direct ownership of BYD or Lenovo stock.
Binance Adds BYD And Lenovo To Its TradFi Futures Lineup
The two contracts are scheduled to launch five minutes apart on September 7. According to Binance’s announcement, BYDUSDT will begin trading at 02:00 UTC, followed by HK0992USDT at 02:05 UTC. The announcement says both contracts will be available for 24/7 trading, subject to regional availability. BYDUSDT will track BYD Co. Ltd.’s H shares listed on the Hong Kong Stock Exchange under ticker 1211. HK0992USDT will track Lenovo Group, which trades under ticker 0992. Both companies are listed on HKEX’s equity market.
The products use different contract structures. BYDUSDT is a USDT-priced perpetual contract, while HK0992USDT is a quanto perpetual contract. Binance says both contracts will use USDT as the settlement asset, have a minimum notional value of 5 USDT, and a tick size of 0.01. A perpetual contract differs from a conventional futures contract because it does not have a fixed expiry date. Binance’s futures contract information explains that perpetual contracts can remain open without a set expiration, subject to margin requirements and other trading conditions.
The contracts will also trade 24/7, even though the underlying Hong Kong equities do not. Binance uses reference prices and mark-price mechanisms for its futures products to help manage positions when the underlying market is closed. Its mark price and price index documentation explains how those mechanisms are used in futures trading. For the new BYD and Lenovo contracts, funding fees will be settled every 4 hours, with the funding rate capped at ±1 %. Binance says both products will initially allow a maximum leverage of 20x and that it can adjust parameters such as leverage, funding fees, and margin requirements based on market conditions.
The Contracts Offer Stock Exposure Without Share Ownership
The launch gives crypto derivatives traders another way to take positions linked to traditional equities. A trader who expects BYD’s share price to rise could take a long position in BYDUSDT, while a trader expecting a decline could take a short position. The contract itself does not confer ownership of BYD shares on the trader. That distinction is important because the products are designed around price exposure rather than conventional equity ownership. Binance has been expanding its range of perpetual contracts tied to traditional assets, including products linked to commodities and other market references. Its TradFi perpetual contract documentation describes these products as derivatives that track traditional assets rather than representing direct ownership.
The 24/7 structure also separates these products from ordinary stock trading. Hong Kong-listed shares trade during the exchange’s designated market sessions, while Binance’s perpetual contracts remain available outside those hours. This can allow traders to establish or adjust positions when the underlying equity market is closed, although prices may differ from those of the underlying shares during those periods.
At 20x leverage, a relatively small move against a trader’s position can have a much larger effect on the margin supporting that position. Binance’s futures risk guidance explains that leveraged positions can be liquidated when losses reduce the available margin to below the required level. The launch also fits within a broader context of the relationship between crypto markets and traditional financial assets. The OECD has examined the growing links between digital-asset markets and traditional finance, including the potential benefits and risks created as the two areas become more connected. The main difference is therefore not access to the underlying companies themselves, but access to another venue for expressing a view on their prices. The contracts provide leveraged exposure to BYD and Lenovo through Binance’s derivatives market, while leaving ownership of the underlying shares outside the product. The launch also comes with risks that differ from simply holding an equity position.
