LIVE NOW

Binance just raised the stakes with new 125x leverage cryptocurrency trading

Posted: 18 October 2019 8:01 pm
News

Launch of Space Shuttle Atlantis on mission STS-66 as viewed from VIP site at Kennedy Space Center.

"Up, up the long, delirious, burning blue, I've topped the wind-swept heights with easy grace, where never lark or even eagle flew."

Good news for anyone who's no longer tickled by 100x leverage cryptocurrency trading: Binance has just announced that it now offers up to 125x leverage.

"Binance Futures offers a fast and stable platform that is designed by traders for traders," said Binance CEO Changpeng "CZ" Zhao. "We have seen an increase in institutional participation in trading, and these professional traders seek out the most efficient ways to trade very quickly, both in terms of cost and performance. And they are flocking to Binance Futures."

It seems that's no mere puffery either. By the numbers, Binance futures trading volume has been skyrocketing this week even as volumes dip elsewhere, according to data from Skew.

But whether there's much call for 125x leverage among your serious institutional traders is another question. Common wisdom holds that once you hit 100x leverage, you're just straight up gambling.

That said, Binance touts features such as built-in hedging that "helps traders manage risk, without sacrificing the trading experience" and is "a unique setup for calculating leverage that enables continuous margin without any jumps, and ‘mark prices’ for preventing unnecessary liquidations and combatting market manipulation".

Still, it's safe to say that at 125x leverage your Bitcoin is basically in god's hands. Pray he's feeling merciful.

"We have seen increased activities from these traders transferring in and out from spot to futures during volatile periods," said Aaron Gong, director of Binance Futures.

Whether they're trading because it's volatile, or whether it's volatile because they're trading, is what you'd call a quintessential chicken and egg problem.

"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," Gong added. "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."

Up, up the long, delirious, burning blue

Following the announcement, an anonymous Binance trader was quoted as saying: "Oh! I have slipped the surly bonds of Earth, and danced the skies on laughter-silvered wings... I've chased the shouting wind along, and flung my eager craft through footless halls of air."

"Up, up the long, delirious, burning blue, I've topped the wind-swept heights with easy grace, where never lark or even eagle flew," they added. "And, while with silent lifting mind, I've trod the high, untrespassed sanctity of space, put out my hand, and touched the face of God."

Then Bitcoin dropped 0.2% and they got rekt.

Never slip the surly bonds of Earth with more than you can afford to lose. Note that having one's face ripped off by an errant trade may not be suitable for everyone's financial situation.


Also watch


Disclosure: The author holds BNB, BTC at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock


Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site