Extreme Caution: Binance CEO Says New Feature Is Not for Crypto Newbies
Binance is jacking up the leverage allowances on its futures platform to 125x and CEO Changpeng Zhao says new traders should be wary.
The exchange officially launched its futures platform in September and subsequently rolled out the larger leverage options.
“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 Binance Futures will allow users to hold 12,500 USDT in BTC.”
Not every feature is for everyone. 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.
— CZ Binance (@cz_binance) October 18, 2019
Zhao says institutional traders are “flocking” to Binance Futures because of its “smooth trading experience.” The platform also plans to launch additional features in the last quarter of 2019.
Says Aaron Gong, director of Binance Futures,
“We have seen increased activities from these traders transferring in and out from spot to futures during volatile periods. 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.”
Futures volume hit a record on October 15 reaching $700 million.
“We’ve seen continued improvement in our volumes and market share, and we expect to see further gains in the coming months. In Q4 of this year, we will roll out new major features that address community feedback, including several developments to improve the user experience.”