Binance Launches PAXG/USDT Perpetual Contract With 75x Leverage

Binance, a prominent global cryptocurrency exchange, has introduced a new perpetual contract for Pax Gold (PAXG) with leverage of up to 75x. This initiative is scheduled to commence on March 27, 2025, at 10:30 AM (UTC). The PAXG/USDT Perpetual Contract will enable traders to participate in leveraged trading of PAXG, a gold-backed cryptocurrency, against Tether (USDT), a stablecoin linked to the US dollar.

Pax Gold (PAXG) is a digital asset fully supported by physical gold, offering investors a secure and convenient method to own and trade gold. Each PAXG token corresponds to one fine troy ounce of a 400-ounce London Good Delivery gold bar, stored in professional vault facilities. This backing ensures that PAXG maintains a stable value relative to the price of gold, making it an appealing choice for investors seeking exposure to the precious metal without the need for physical storage.

The introduction of up to 75x leverage on the PAXG/USDT Perpetual Contract is a significant move by Binance, allowing traders to magnify their potential profits by borrowing up to 75 times their initial investment. However, it is crucial to recognize that leverage also amplifies potential losses, making it a high-risk strategy suitable only for experienced traders who fully comprehend the associated risks.

This new perpetual contract is expected to generate substantial interest from traders and investors, as it offers a unique opportunity to gain exposure to gold through a digital asset with the added potential for leveraged returns. Nevertheless, traders must exercise caution and conduct thorough research before engaging in leveraged trading, as the high level of leverage involved can result in significant losses if the market moves against their position.

In summary, Binance's announcement of the PAXG/USDT Perpetual Contract with up to 75x leverage represents a notable development in the cryptocurrency market. It provides traders with a new avenue to gain exposure to gold through a digital asset with the potential for leveraged returns. However, it is essential for traders to understand the risks involved in leveraged trading and to approach this high-risk strategy with caution.