Binance Raises Maximum Leverage On Bitcoin Futures To 125x

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Binance Raises Maximum Leverage On Bitcoin Futures To 125x
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Binance crypto exchange has just sweetened the pot as its futures platform now offers 125x leverage on its Bitcoin-Tether futures starting today. The Binance futures trading platform was launched a month ago, initially offering up to 20x leverage. With this new development, traders can select leverage positions from as low as 1x to as high as 125x.

This new announcement comes as Binance enjoys a stream of positive development in the past few weeks. Nonetheless, Binance’s native coin, BNB, remains in the tight grip of the bears.

Binance Users Can Now Hold Up To 12,500 USDT In BTC

Following this announcement, users with collateral deposits of $100 USDT on Binance Futures can hold up to 12,500 USDT in bitcoin, with an option for traders with large positions to adjust to lower leverage.

Binance now notably offers the highest leverage compared to rival platforms like derivatives giant BitMEX which offers 100x leverage.

Speaking about this new development, Binance CEO Changpeng Zhao revealed that the futures platform has witnessed increased participation by institutional traders who are very interested in Binance futures. He then adds:

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“The market has been demanding a product with superior stability and performance; now we are providing one.” 

Critics have long suggested that offering traders such high leverage expose them to high risks. However, Binance says that its futures contracts offers traders built-in hedging to help them manage risk in addition to an insurance fund that helps lower the chances of auto-deleverage. 

Director of Binance Futures, Aaron Gong, noted:

“The liquid and easy to use spot market, as well as the simple process to transfer capital between spot and futures provides traders with the most efficient manner to trade in both markets. We’ve seen continued improvement in our volume and market share, and we expect to see further gains in the coming months.”

He further stated that Binance will be offering new features in Q4 to address community feedback and also other developments to improve user experience.

Binance’s Positive Trend

This announcement comes as Binance has been seeing a plethora of positive developments over the past few days.

– Binance successfully completed its 9th quarterly token burn, burning over 2 million BNB to decrease the coin’s supply in circulation. With this token burn, Larry Cermak, the director of Research at The Block concluded that Binance has experienced its second-highest quarterly profit (approximately $186 million in Q3 and $1 billion cumulatively). Cermak also pointed out that in this recent 9th token burn, Binance burned more BNB than in Q2 and Q3 combined.

– Binance announced a partnership with Amun AG, a firm that issues cryptocurrency Exchange-Traded Products (ETP) on October 15 to launch the first-ever BNB ETP on SIX Swiss Exchange, which is currently the tenth-largest crypto exchange. This ETP was listed as ABNB and would begin trading at an initial price of at least $20. The partnership opened the door for traditional investors to access diversified exposure of the crypto market and also for more innovative products. This announcement was followed by a 5% surge in the price of Binance’s native token, BNB.

– Also on October 15, the Binance futures platform posted a historic volume of more than $700 million on its BTC/USD product. While this volume falls below that of BitMEX which saw a 1.9 billion volume on the same day, it is a huge achievement for the futures platform which was launched only a month ago. In fact, this volume made the product the third most traded, following closely behind BitMEX and Huobi exchange.

In the wake of this announcement of 125x leverage, BNB has remained unmoved below the $20.00 key level. BNB is exchanging hands at $18.21 at press time after losing 2.13% of its value in the day, but the recent developments in the Binance ecosystem could increase the value of BNB in the long-term.

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