Binance Futures has increased its maximum leverage to 125x for BTC/USDT contracts and enabled a leverage adjustment function on its web and testnet trading interfaces. Users can now select any leverage between 1x and 125x.
Max leverage positions on Binance now exceed crypto exchange BitMEX’s futures leverage positions, which top off at 100x for some contracts.
Noted economist and crypto skeptic Nouriel Roubini has previously argued that, in providing such high leverage, exchanges are exposing traders to too much risk.
Binance said its BTC futures contract provides a built-in hedging tool to help traders manage that risk. Further, the exchange said it’s providing an “insurance fund” (the firm’s quotation marks) that “helps to limit the chances of auto-deleverage.”
Binance Futures allows for highly leveraged trading using a sophisticated risk engine and liquidation model. With its fast matching engine, usability, seamless trading experience and risk controls, Binance Futures provides a competitive advantage in the market. Its platform uses a unique setup for calculating leverage that enables continuous margin without any jumps, and ‘mark prices’ for preventing unnecessary liquidations and combatting market manipulation.
Traders are able to select any leverage from 125x to 1x and larger positions will adjust to lower leverage allowed. At 125x leverage, a 100 USDT collateral deposit on Futures will allow users to hold 12,500 USDT in BTC.