- Binance recognizes the need to have cost and performance efficiencies.
- Binance has also put in place an “insurance fund” that will ill help to mitigate the risks of auto-deleveraging.
Traders of Bitcoin futures contract on the Binance futures platform will have access to the increased maximum leverage of 125x. The leverage is tailored for BTC/USDT contracts as per the release on October 18.
Support for the contracts has already started with users being able to choose a 1x -125x margin leveraging limit. The development has also allowed traders to adjust large positions to lower positions.
“At 125x leverage, a 100 USDT collateral deposit on Binance Futures will allow users to hold 12,500 USDT in BTC.”
Binance assures users the high leverage trading is currently supported by a “sophisticated risk engine and liquidation model.” A fast matching engine with the ability of supporting “continuous margin without any jumps, and ‘mark prices’ for preventing unnecessary liquidations and combatting market manipulation,” has been employed as well.
The CEO of Binance, Changpeng Zhao reckons that the futures platform has recorded a significant increase in institutional participation. The volume of professional traders on the platform also demands that cost and performance efficiencies be introduced. In addition to that, Binance offers an “insurance fund” can be used to mitigate possibilities of auto-deleverage.
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