Binance, the world\u2019s largest cryptocurrency exchange, continues adopting new leverage trading restrictions on its futures platform in a move to expand consumer protection.<\/p>\n
After introducing a 20x leverage limit for new users on July 19, Binance Futures is preparing to apply the same limit for existing users soon, Binance CEO Changpeng Zhao announced Sunday.<\/p>\n
\u201cWe didn’t want to make this a thingy,\u201d the CEO said, noting that the new restrictions will be applied \u201cover the next few weeks.\u201d<\/p>\n
Effective last Monday, new users with registered Binance Futures accounts of less than 30 days were prohibited from opening positions with leverage exceeding 20x. The new leverage limits will also apply to existing users with registered futures accounts of less than 30 days, according to Binance\u2019s leverage trading page. \u201cLeverage limits for new users will gradually increase only after one month from registration,\u201d Binance noted.<\/p>\n
Launched in July 2019, the Binance Futures trading platform initially allowed investors to open leverage positions at a maximum of 20 times, meaning that an investment of $1,000 could be turned into a bet of $20,000. The exchange subsequently increased maximum leverage and margin on Bitcoin (BTC) against Tether (USDT) contracts to 125x in October, noting that highly leveraged trading was introduced using a \u201csophisticated risk engine and liquidation model.\u201d<\/p>\n
\u201cAt 125x leverage, a 100 USDT collateral deposit on Binance Futures will allow users to hold 12,500 USDT in BTC,\u201d the firm said at the time.<\/p>\n