According to the most recent official release, Binance has introduced an x125 leverage to crypto futures trading. This is a major breakthrough in crypto trading. Especially because, until today, the biggest leverage offered in the crypto trading industry was the widely accepted x100.
The new leverage only for BTC/USDT futures contracts
Despite the fact that Binance has more trading pairs, the new leverage will be available only for BTC/USDT futures. At least at the moment.
Regarding the new addition, Binance states:
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.
The leverage unique in the cryptocurrency trading business makes Binance the spearheading innovation platform in crypto futures trading, and digital trading in general. And we can freely say that Binance is a de facto leader and an industry’s giant.
Higher leverage – higher risks – higher rewards
It will be interesting to see how many people will use the new leverage since the risk involved is so high. Nonetheless, it is a nice addition to one of the biggest exchanges in the world.
Towards the end of their blog post, Binance warns that futures trading carries a big amount of risk. Indeed, they are right. However, the greater risk, the bigger the reward. Consequentially, with an x125 leverage, crypto traders can earn $125 for the initial investment of just $100 if Bitcoin’s price spreads as little as 1%.
Trading futures with such high leverage is a risk that those with a lower level of knowledge may hardly comprehend. Even more so because of the volatile nature of the given assets. Therefore, when you trade futures on Binance or any other cryptocurrency derivatives trading platform, use extreme measures of caution.