Binance One-Ups Bitfinex With its Latest Feature “Not Recommended for New Traders”
It has just been over a month since the leading cryptocurrency exchange launched its futures platform. In the past 30 days, Binance Futures has been making a new record after another for BTC/USD contracts, leaving other exchanges behind.
At one point, the trading volume recorded by Binance Futures’ surpassed the volume registered by Binance’s spot exchange.
Now, Binance has taken its competition to the most popular derivatives exchange in the market BitMEX at another level by introducing a new feature.
This new feature is the maximum leverage on Binance Futures that has been increased to 125x for BTC/USD contracts. This means users can now adjust the leverage function, between 1x and 125x, on its web and testnet trading interfaces.
“Trading up to 125x leverage is now live on Binance Futures,” the exchange announced.
“We have seen an increase in institutional participation in trading … And they are flocking to Binance Futures,” said Binance CEO Changpeng Zhao in a statement.
“The market has been demanding a product with superior stability and performance; now we are providing one.”
BitMEX, however, provides leverage on Bitcoin and other cryptocurrencies up to 100x. With the latest move, Binance has fired a direct shot at BitMEX, one-upping the exchange with its even higher leverage.
However, Zhao doesn’t recommend it to new traders.
Use high leverage with extreme caution. Dont recommend it for new traders. https://t.co/vstV0Lusf2
— CZ Binance (@cz_binance) October 18, 2019
Given that it's extremely risky, you might want to hold your horses before jumping on the 125x leverage as warned by CZ himself.
“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,”
further explained CZ.
“As a platform, we have to provide choices to stay competitive,” he added.
Just last month, Intercontinental Exchange launched its physically settled Bitcoin futures platform Bakkt. Although the exchange recorded extreme low and disappointing volume, commentators believe it will catch up.