Binance will limit the leverage of futures trading to 20 for its users!
Binance exchange intends to limit its trading leverage in “Futures” to its users in the near future. In the past few days, Binance has also reduced the access of its new users to the levers in futures trading by up to 20 times.
According to shetcoiner; quoted to TheBlock website: Changpeng Zhao; Binance CEO and founder, has announced in a tweet at Sunday that Future Binance trading platform, will limit the rookie users access to the trading leverage more than 20 times.
Zhao has said:
In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks.
Binance’s move comes two months after Binance announced support for market contracts, the BTC / USDT currency pair, up to 125 times the leverage.
In the past two months, Binance exchange has faced strong reactions from lawmakers in several countries, including the United States, Canada, the United Kingdom, the Cayman Islands, Italy, Poland, Japan, Hong Kong, Thailand and Singapore.
The FTX cryptocurrency exchange in Hong Kong has implemented similar Binance policies, reducing the maximum leverage in its futures market from 101 times to 20 times.
FTX’s exchange co-founder and CEO Sam Bankman Fried has said that high-leverage trading is only a small part of the exchange’s trading volume.
According to many crypto experts, these exchange’s Actions have started because Bitcoin has caused a lot of losses to many new users in recent months, and new users’ use of high leverage is up to 125 times more liquid. Many traders have led and exchanges have imposed these restrictions to reduce trading risk in futures.
