Binance ALL Composite Index

The Binance ALL Composite Index is an equal‑weight index on the Binance platform that tracks all USDT‑denominated, coin‑margined alt‑coin perpetual contracts. It can be used to gauge the overall performance of alt‑coins and can be traded using long/short, hedging, sentiment‑cycle, funding‑rate arbitrage and other risk‑management strategies.

In this article we systematically explain the definition, composition and rebalancing mechanism of the Binance ALL Composite Index, and from the perspectives of long/short, hedging and funding rates we provide practical trading ideas and risk‑control suggestions to help readers elevate their strategy level in the alt‑coin perpetual market. For further details, continue reading.

What Is the Binance ALL Composite Index?

Binance ALL Composite Index (Binance ALL Composite Index) is specifically designed to monitor the overall movement of alt‑coins on the Binance exchange. The index uses an equal‑weight methodology and covers all USDT‑denominated, coin‑margined perpetual contracts, excluding BTC, ETH, stablecoins and delivery futures, with the aim of reflecting the collective price performance of alt‑coins.

• Design philosophy: Inspired by traditional indices such as the S&P 500 and Nasdaq, it meets traders’ demand for diversified, spread‑out investment tools.
• Leverage & copy‑trading: The index contract supports up to 75× leverage and offers a copy‑trading feature to lower the entry barrier for newcomers.
• Rebalancing mechanism: Daily rebalancing ensures that component tokens remain equally weighted, preventing large‑cap tokens from dominating the index’s performance.

How the Binance ALL Composite Index Works

Index Specifications and Reference Point

• Contract code: `ALLUSDT`
• Full name: Binance ALL Composite Index
• Pricing method: USDT‑denominated, coin‑margined alt‑coin perpetual contracts
• Reference point: 1 index point
• Reference date: 2025‑08‑01 08:15 (UTC)

The index completes its component rebalancing each day at 08:00 UTC, using Binance’s real‑time contract prices. Tokens that show abnormal behavior are automatically excluded to maintain index stability.

Component Tokens and Screening Rules

• Coverage: All USDT‑denominated alt‑coin perpetual contracts listed on Binance.
• Exclusions: BTC, ETH, contracts denominated in USDC or other stablecoins, delivery futures, pre‑market trading, token‑margined contracts, and any contract slated for delisting within the next 40 hours.
• Liquidity requirement: Contracts with very low trading volume are omitted. The number of components varies with market conditions, typically numbering in the hundreds.

Equal‑Weighting and Point‑In‑Time Rebalancing

The index employs an equal‑weight scheme, meaning each component token contributes the same proportion to the calculation, offering a more authentic view of the market’s average performance. Rebalancing occurs at 08:01 UTC daily, following these steps:

1. Add any new tokens that were listed before 08:00.
2. Remove tokens that are abnormal, suspended, or scheduled for delisting.
3. Re‑calculate the weighted‑average price to ensure the index does not become skewed toward a single asset.

Price Caps and Stabilization Mechanism

To prevent a single highly volatile token from exerting excessive influence, a cap is placed on each component’s weight during rebalancing. In the calculation formula, δ = 0.95, meaning 95 % of the new index value is derived from the previous period, with only 5 % reflecting the current market change. This design dampens the impact of short‑term spikes.

ALLUSDT Perpetual Contract Trading Specifications

Settlement Fee Model

ALLUSDT is a perpetual contract with no fixed delivery date; profit and loss are calculated in the same way as Binance’s standard coin‑margined perpetual contracts. The funding rate is settled every 8 hours, with a range of ±3 %. The calculation formula is:

```

Funding Rate = Premium Index + clamp(Interest Rate − Premium Index, 0.05%, −0.05%)

```

TOTAL2 / TOTAL3 Indices vs. Binance ALL Composite Index

• TOTAL2/TOTAL3 focus on overall market‑cap movements and are often used to assess whether capital is flowing from BTC/ETH into alt‑coins.
• ALLUSDT emphasizes price dynamics of tradable derivatives; its equal‑weight design prevents a single large‑cap token from dominating, and the index can be directly traded to capture the beta long/short performance of the alt‑coin market.

Trading Strategies Accessible via the Binance ALL Composite Index Contract

Although the index contract’s rebalancing and weight caps mitigate extreme volatility, it still supports a variety of practical strategies. Below are four commonly employed approaches:

1. Sentiment‑Cycle Trading (Alt‑Coin Beta Thermometer)

• Concept: Use the ALL index as a sentiment gauge for the alt‑coin market, combined with technical tools such as RSI, Bollinger Bands, etc., to spot overbought or oversold conditions.
• Complement: When Bitcoin’s dominance (BTC.D) falls and TOTAL2/TOTAL3 expand, alt‑coin sentiment typically rises, suggesting a long position on ALL.
• Caution: Equal weighting magnifies the impact of smaller tokens; despite the δ limit, daily rebalancing can still create short‑term tracking error.

2. Pair Trade Relative Value (ALL / BTCDOM)

• Concept: BTCDOM measures Bitcoin’s strength relative to other alt‑coins, while ALL reflects overall alt‑coin strength. Going long ALL and short BTCDOM can capture gains when capital shifts from BTC to alt‑coins.
• Risk: The two metrics are calculated differently (BTCDOM is market‑cap weighted), so their correlation is not perfectly inverse. Pairing with volatility‑based sizing is advisable for more robust hedging.

3. Long‑Short Hedging (Alt‑Coin Portfolio Hedge)

• Concept: When holding a diversified alt‑coin spot portfolio, you can short the ALL index to reduce overall downside risk.
• Implementation: If the spot allocation leans toward large‑cap tokens (e.g., SOL, XRP, BNB), combine an ALL short with single‑token hedges to blunt the effect of small‑token volatility on the hedge’s effectiveness.

4. Funding‑Rate Arbitrage

• Concept: ALLUSDT shares the same funding‑rate schedule as other USDT perpetual contracts. In extreme long‑or‑short market conditions, opening opposite‑direction positions can capture funding‑rate income.
• Note: Binance may adjust the funding settlement frequency to 4 hours or even 1 hour during volatile periods; always monitor Binance’s real‑time announcements.

Frequently Asked Questions

Can the Binance ALL Index be used for hedging?

Yes. The ALL index offers a diversified exposure to the alt‑coin basket, making it suitable for hedging systematic alt‑coin beta risk. If your holdings are heavily concentrated in a few large tokens, consider supplementing the hedge with single‑token positions for better coverage.

Will Binance launch a spot product for the ALL Index?

As of now, Binance has not announced any plan to list a spot version of the ALL index; the perpetual contract remains the sole tradable form.

How does the index handle token forks?

• No new token created: The index remains unchanged.
• New token created: The new token is temporarily added at the previous weight during the next rebalancing, then officially incorporated.
• Token split: The original component is replaced by the new token, and the weight is adjusted proportionally.

Closing Remarks

The Binance ALL Composite Index contract, through its equal‑weight structure and daily rebalancing, provides an efficient and transparent tracking tool for the alt‑coin market. The product enhances alt‑coin liquidity and offers institutions and individual traders a diversified set of trading and hedging options. Whether you aim to capture sentiment cycles, execute relative‑value pairs, hedge portfolio exposure, or engage in funding‑rate arbitrage, the ALL index can serve as a foundational platform for multiple strategies.

*Note for U.S. readers*: Access to this contract must be through Binance.US (the U.S.-compliant platform) rather than the global Binance site.

*Tax reminder*: Gains from cryptocurrency trading may be taxable under the laws of your local jurisdiction; consult a qualified tax professional for guidance.

For deeper analysis of the Binance ALL Composite Index, follow Bitaigen (比特根) and explore related articles.

Related Reading

• China's Regulated Crypto Exchanges: Binance, OKX, HTX
• Hyperliquid vs Binance: Contracts, Fees & Security
• Crypto Platform Comparison: Binance, OKX, Bitget, Gate.io

💡 Register on Binance with referral code B2345 for the maximum trading fee discount. See Binance complete guide.

⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.