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

[RSRS]

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.

6) All of that being said, there's been a bunch of discussion recently around high leverage (> 20x).

Nearly every crypto derivatives exchange allows it, and nearly every one will say the same thing:

It's a tiny fraction of volume and positions.

— SBF (@SBF_Alameda) July 25, 2021

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