Unleashing the Leverage Beast
Binance has decided to boost their maximum leverage on Bitcoin (BTC) and Tether (USDT) futures contracts to the jaw-dropping level of 125x. As if the crypto world wasn’t already thrilling enough, traders can now select leverage anywhere from 1x to 125x according to a recent announcement. Just imagine – with a mere 100 USDT, you could technically hold a gargantuan 12,500 USDT in BTC. Don’t worry, your lawyer will probably love you for this just after your first liquidation.
The Art of Risk Balancing
Now, before you get too giddy and dive headfirst into the leverage-happy waters, Binance is touting a “sophisticated risk engine and liquidation model.” Here, the platform claims to introduce a system where margin adjustments will not be a wild game of leapfrog. This means traders can maintain their positions without those dreaded jumps in margin requirements, hopefully reducing unnecessary liquidations while warding off market manipulation. Because who wouldn’t want some protection to go along with their heightened risk?
What CZ Has to Say!
Changpeng Zhao (CZ), the charismatic captain of the Binance ship, shared insights about the increased institutional participation on the platform. Apparently, professional traders have been clamoring for swift trading options that also pack some punch in terms of cost and performance efficiencies. It’s safe to say that if the professional crowd is on board, it’s going to be one wild ride.
Insurance for the Daredevils
Just as a safety net is crucial in tightrope walking, Binance also offers traders an ‘insurance fund’ aimed at minimizing auto-deleveraging risks. Aaron Gong, Binance Futures Director, noted how there’s been a trend of traders sailing back and forth between spot and futures trading during those nail-bitingly volatile periods. You know those moments when every tick of the price feels like a mini heart attack? Yeah, those.
Binance’s Dual Prominence
Cointelegraph has spotlighted how Binance’s Bitcoin futures were the shining star amid an otherwise dreary trading environment. The platform set a new daily trading volume record of over $700 million on October 15 alone, dwarfing Bakkt’s humble 10 BTC trading volume. It’s evident that Binance’s strategy is resonating, even as their native exchange token, Binance Coin (BNB), flounders in lower territory than its recent peak.
The Financial Outlook
In case you thought Binance was struggling, a recent report indicates they raked in approximately $185 million in the third quarter of 2019. This marked their second-best quarter ever, proving that while markets fluctuate, Binance seems to know how to keep the lights on, even when the prices get gloomy.
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