FTX & Binance promote ‘responsible trading’ by reducing max leverage limits

Published by
FTX & Binance promote ‘responsible trading’ by reducing max leverage limits

FTX crypto derivatives exchange and Binance, the world’s largest crypto exchange have announced a drastic reduction in the maximum leverage options allowed on their respective platforms. This move has come as part of the exchanges’ initiative towards promoting responsible and secure trading for existing and new users.

FTX’s responsible trading

Sam Bankman-Fried (SBF), FTX CEO announced on Twitter this weekend, that the earlier maximum leverage limit of 101X on FTX will be reduced to a glaring 20x. SBF revealed this move as part of their initiative to enable and “encourage responsible trading.” Furthermore, he shared that leverage trading does not constitute majority activity on the platform. Regardless of having the option to leverage, traders prefer to not gamble in leveraged money on the existing volatile nature of cryptocurrencies.

“This will hit a tiny fraction of activity on the platform, and while many users have expressed that they like having the option, very few use it.”, SBF tweeted.

Where on one hand FTX received a positive response from the crypto community for encouraging responsible trading. On the other hand, many traders still feel that the 20x leverage limit is still high risk and enough for traders to get caught in the web of gambling away over-calculated trades. Especially, for new investors, 20x is substantial leverage that could cost a fortune on their first few trades.

Binance’s Consumer Protection

Binance also revealed that it has already begun slashing its leverage limits for new users and implement the same for existing ones in the coming weeks. Binance co-founder and CEO, Changpeng Zhao tweeted on Sunday that Binance futures have commenced the limitation on leverages from 19th July itself, restricting the maximum leverage limit to 20x for new users.

“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” Zhao tweeted.

Just two months ago, Binance has announced 125x leverage limits for BTC/USDT contracts. However, Binance has witnessed an inevitable global regulatory crackdown since then. Recently, it announced the discontinuation of stock token services after getting bombarded by several nations on regulatory grounds.

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple

Senate Democrats and Republican lawmakers have ended separate roundtable meetings focused on the Crypto Market…

October 23, 2025
  • News

How the Crypto Market Could React to the Next Fed Meeting on October 29?

The crypto market has, for a while now, been pricing a potential 25 basis points…

October 23, 2025
  • News

$1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP

Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…

October 22, 2025
  • News

Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions

Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…

October 22, 2025
  • News

Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7

Crypto ownership is a topic that has been discussed across major forums globally in the…

October 22, 2025
  • News

Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%

Crypto exchange Robinhood has listed the Binance coin for spot trading for its U.S. customers.…

October 22, 2025