Binance to reduce maximum futures leverage

Mon 26 Jul 2021 ▪ 11h40 ▪ 2 min de lecture - par Violaine Silverstein

Crypto exchange Binance has announced reducing the maximum futures trading leverage for its existing users. According to Changpeng Zhao’s Twitter, this measure will be implemented gradually to all users over the next few weeks.

News for all Binance Futures traders

The exchange’s co-founder and CEO Changpeng Zhao (better known as CZ) announced on Twitter that Binance Futures had already started limiting new users to max 20x leverage since 19th July. All customers will be affected by deleverage without exception.

Gradual implementation of restrictions

According to CZ, the limit will be applied progressively over the next few weeks in the interest of consumer protection. Interestingly enough, two months prior to that Binance announced that its futures trading platform will support BTC/USDT contracts with up to 125x leverage. Such type of trading fits those who aim to increase their stablecoin savings (USDT in this case).

Hong Kong-based crypto exchange FTX has made a similar decision to reduce the maximum leverage from previous 101x to the current 20x. The FTX founder and CEO Sam Bankman-Fried pointed out the fact that high leverage trading only makes up a small amount of FTX’s trading volume.

The crypto exchange Binance is doing everything possible to keep its ability to compete on the market by whetting their clients’ appetite since financial regulators of the US, Canada, the UK, Cayman Islands, Italy, Poland, Japan, Hong Kong, Thailand and Singapore are all playing against the exchange.

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Violaine Silverstein

Quand j’ai commencé dans les cryptos il y a 3 ans, il y avait plus de 95% d’hommes et encore très peu de femmes, bon ça n'a toujours pas beaucoup changé, mais les choses bougent et je suis fière de representer les femmes dans ce milieu très technique qui est passionnant et plein d'avenir.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.