This morning, Binance launched 4 new TradFi perpetual contracts in one go:
- 10:00 Kuaishou (KUAISHOUUSDT), up to 20 times
- 10:05 Meituan (MEITUANUSDT), up to 20 times
- 10:10 CSOP SK Hynix daily 2 times, up to 10 times
- 10:15 CSOP Samsung Electronics daily 2 times, up to 10 times
At first glance, the first two with a maximum of 20 times seem to carry the greatest risk.
But if you look closely at the underlying assets, you'll find that the real high-risk lies in the latter two—because they are products that "come with 2 times leverage" themselves.
"2 times leverage" stacked on top of "up to 10 times perpetual" is definitely not a simple case of "2×10=20 times".
First understand: what these two "2 times" really mean
Kuaishou and Meituan are easy to understand, as they correspond directly to the rise and fall of the stock price itself; how much it rises or falls is straightforward.
But Hynix and Samsung are completely different.
What Binance introduced is not the Korean stocks themselves, but two "daily 2 times leverage ETFs" (codes: 7709 and 7747) on the Hong Kong stock market.
In simple terms:
- If the underlying stock rises 1% today, this product targets an approximate rise of 2%;
- If the underlying stock falls 1% today, this product targets an approximate fall of 2%.
The two key words are "daily".
It resets the base every day at market close. It does not simply "multiply the stock price by 2 over the long term," which introduces a fatal issue: volatility decay.
Why does "2 times" actually make it easier to lose money?
Let's talk about the data. Suppose there's a stock that rises 10% on the first day and then falls 10% on the second day:
- Normal stock trajectory: 100 yuan → 110 yuan → 99 yuan (only lost 1%)
- Daily 2 times product trajectory: 100 yuan → 120 yuan (up 20%) → 96 yuan (down 20%)
Did you notice? Before the stock even returns to the original point, the 2 times leverage product has already lost 4%!
This is what is called "volatility decay".
If the market is continuously soaring, 2 times leverage can indeed be very pleasing; but if the situation involves high-level pulling and fluctuations—up today, down tomorrow, back up again the day after—even if the stock price doesn't change, your principal will be gradually worn down by this "daily reset" mechanism.
So please remember: the "2 times" here is definitely not just about "doubling the returns"; it also carries a "volatility wear" attribute.
Even more fatal: it is now wrapped in a perpetual contract
This is what I think deserves heightened caution.
Products that already carry "daily 2 times" and "volatility decay" now have a layer of up to 10 times perpetual contracts wrapped around them by Binance.
Its real risk nesting is as follows:
Underlying stock volatility → daily 2 times ETF amplification (and resulting loss) → perpetual contract leverage further amplifying.
This is called "leveraged leverage".
This is also why Binance allows Kuaishou and Meituan to go to 20 times, but Hynix and Samsung are only given 10 times. The official reduction in leverage is not because they are safer, but precisely because their underlying structure is too complex and too risky!
Before trading such contracts, check these 3 things first
If you plan to participate in trading, it's advisable to complete these three checks:
1. Check market liquidity
New contracts just launched need time to establish trading depth. If you see the price suddenly spiking, don't rush to chase it; it might just be because the market is thin, and a few small buy orders have pushed the price through.
2. Check basis and funding rate
Traditional stocks have trading hours, but perpetual contracts are continuous 24 hours. During the trading halt of Hong Kong/Korean stocks, the contract price can easily diverge greatly from the underlying asset, and the funding rate may eat up a significant portion of your profits.
3. Position size must be lighter than usual
When facing such a "self-contained 2 times leverage plus perpetual" monster-type asset, do not treat it as a normal stock for building a base position, nor should you hold on for the long term. It is only suitable for very short-term speculative trades driven by clear news, with quick entry and exit.
Conclusion
Having more tools is a good thing, but leverage is always just an amplifier. It can amplify returns but cannot increase your win rate.
This time, Binance introducing new TradFi assets essentially brings high volatility traditional financial assets further into the crypto market, allowing everyone to capture the fluctuations of Hong Kong and US stock derivatives in one account around the clock.
If you do not yet have a Binance account, or want to experience the trading experience of "one account conquers all", you can register through the link below:
👉 https://jump.do/zh-Hans/xlink-proxy?id=3
(Invitation code: aicoin668, enjoy a 10% rebate)
The easier it is to access trading, the more it tests risk control. The market has never lacked high-volatility liquidation schemes, but what it lacks are those who understand the rules and still know how much position to control and can survive.
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Risk Warning: Investing in US stocks still requires self-bearing of market risks, regulatory risks, and compliance risks of local laws and regulations (especially foreign exchange controls, overseas investment reporting, etc.). This content is only a market observation share and does not constitute investment advice. The crypto market is highly volatile; please participate within your risk tolerance.
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