Binance and FTX to reduce their maximum leverage limit to 20X.
This is to encourage responsible trading and secure trading amidst regulatory scrutiny.
Many reports suggest that over 90 percent of CFDs traders lose money due to high leverages. This means only a few make profits, triggering the “responsible trading” campaign. To find a long-lasting solution to minimize the risk level of trading, FTX, and Binance exchange have announced the drastic reduction of the maximum leverage option on their platforms.
This initiative is to encourage responsible trading and secure trading for both new and existing users. It is also believed that the decision comes from the rising crackdowns on crypto exchanges based on their implementation of consumer protection measures.
A couple of months ago, Binance announced that its maximum leverage limit was 125X for its BTC/USDT contract. However, the exchange has backtracked its statement to change the limitation of leverages for new and existi
