Binance, the largest cryptocurrency exchange in the world, continues to place restrictions on leveraged trading. The futures platform has had leverage limited this time. This is all to improve consumer protection.
Binance Futures limits the leverage to x20
Binance Futures has set a new 20x leverage limit on July 19 for new users. It is now planning to extend the same limit to its existing users. Changpeng Zhao, Binance’s CEO announced the information on Sunday.
Binance Futures users who are new cannot open positions that have leverage greater than 20x, as of Monday. Existing futures account users will be subject to the new leverage limits. According to Binance’s leveraged trade page:
Leverage limits for new users will only gradually increase one month after registration.
Binance Futures was launched in July 2019 and initially offered leverage options of up to 200%. An investment of $1,000 could convert into a bet worth $20,000, In October, the exchange increased the maximum leverage (BTC) and margin (USDT) on Bitcoin (BTC). The platform claimed that high-leverage trading was enabled by an “advanced Risk Engine and decommissioning Model”.