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Binance 125x Leverage Criticism

Crypto exchange Binance announced that its recently launched futures trading platform would offer BTC/USDT contracts with up to 125:1 leverage.


Use With Caution

Starting from today, Binance Futures allows investors to trade with up to 125x margin and pick any leverage from 125:1 to 1:1 for BTC/USDT contracts. When using the highest possible leverage, a 100 USDT deposit would enable users to hold 12,500 USDT in BTC.

Binance CEO Changpeng Zhao (CZ), explained:

The performance of the Binance Futures systems far outstrips many other platforms in the market, giving users a smooth trading experience. The market has been demanding a product with superior stability and performance; now we are providing one.

CZ said via his Twitter profile that the high-risk trading option is not recommended for beginners.

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Source: https://bitcoinist.com/binance-125x-leverage-sparks-criticism-from-community/