According to the recent announcement, Binance has boosted the maximum leverage to 125x for BTC/USDT contracts and enabled the ability to adjust leverage on its web and testnet trading interfaces. Investors with the risk-appetite to trade on margin can now select between 1-125x leverage.
With the increased leverage, Binance CEO Changpeng “CZ” Zhao took to Twitter to warn users about the risks of trading on margin, suggesting new traders stay away from the functionality.
Use high leverage with extreme caution. Dont recommend it for new traders. https://t.co/vstV0Lusf2
— CZ Binance (@cz_binance) October 18, 2019
“Not every feature is for everyone,” Zhao added. “Some features, while not liked by everyone, are in high demand only for small selected groups. Please don’t use features you don’t like or need. As a platform, we have to provide choices to stay competitive.”
It’s clear that Binance is pushing hard to attract high-volume traders. As we previously reported, the exchange recently announced the launch of its VIP Invitation Program for new users looking to trade its spot, margin and futures offerings. Participating investors can receive trading fee discounts by providing screenshots of their trading volume at another exchange.
Image: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.