what is the maximum leverage available on binance futures? 125x 100x 75x , Trades in Binance exchange has a lots of features and using leverages in Binance future trades is one of the trading methods. After leverage was added to Binance future trading this exchange’s fans was gradually increased.
What is the maximum leverage available on Binance future trades?
At the moment, the maximum leverage possible and available on Binance future trades are 125x. This leverage means that the trader can trade with 125 times of their stock’s position value in the market. Getting your leverage high in Binance future trades will cause to have more profits with less position value.
Using a 125x leverage in Binance future trades can increase your risk in trades so you should pay a close attention to your trade position for a leverage trading in future’s market.
You can trade to 125 times more than your stock in future market’s trades using leverages. For example, you only have 20 dollars in your Binance future account but if you use the maximum leverage your credit will increase to 2500 dollars. So if the price gets increased and you make profit, your profit from 2500 dollars will be calculated and transferred to 20 dollars.
The risk of using maximum leverage in Binance future trades
Using the maximum leverage of 125x in Binance future trades can make you bankrupt or cause you a great loss. So if you are not a professional or super professional trader, please don’t use high leverage so you don’t put your stocks in danger.
Liquidation in the time of using the maximum leverage in future trades can cause you to a full and complete bankrupt, so be very cautious for choosing your leverage and refuse to choose high leverages with low position value and close liquidating point.
Binance’s new rules for Futures trading leverage
Binance and its CEO; Changpeng Zhao, announced in twitter that:
Binance futures has already started “limiting new users to max 20x leverage” since July 19.
Despite these limitations, users can no longer access to 125x and high leverages without authentication and with a level one account.
Implementation of these new rules for previous Binance users will also be implemented over time to reduce the risk of leveraging futures by novices and rookies.
Zhao has also said that:
“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks”
Such restrictions on leverage futures trading have taken place while other exchanges, such as FTX, have already implemented similar restrictions on Binance. In an action, the exchange has reduced its leverage from 101 times to 20 times.
Now you can watch this video for better understanding.