Malta-based cryptocurrency exchange Binance has announced that the maximum leverage for its futures product will be increased to 125x.
This means that customers with a balance of $100 will be able to trade with a staggering $12,500 on Bitcoin futures markets.
The decision to increase leverage came alongside a disclaimer stating that “buying, selling, holding and partaking in futures trading of cryptocurrencies are activities that are subject to high market risk”.
Binance’s largest competitors from a derivatives standpoint is BitMEX, who currently offer 100x leverage on perpetual swap and futures contracts for Bitcoin, and 50x leverage for Ethereum.
— Binance (@binance) October 18, 2019
Aside from launching a futures exchange, Binance has also opened operations in the United States in recent months, although trade volume has been significantly lower than expected.
Binance CEO Changpeng ‘CZ’ Zhao found himself at the end of abusive comments from Bitcoin SV head honcho Craig Wright earlier this week.
Wright claimed that CZ was acting illegally and that he would eventually end up in prison, despite lacking proof for his accusations.