Binance will assing leverage based on a trader’s experience

According to an interview from Finance Magnates with Gin Chao, who is the Chief Strategy Officer of one of the world’s largest cryptocurrency exchanges, Binance will most likely introduce a framework which will calculate the leverage based on the trader’s experience.

Chao had quite a long talk with the news outlet, where comments were shared about collaborations with Facebook and the integration with the US market, but what struck the most interest was Binance’s leap towards a more lucrative platform.

According to Gin Chao, Binance will definitely not go for 100:1 leverage caps as it’s deemed to be quite dangerous regardless of the experience a trader may possess. Due to the volatility of cryptocurrencies, a 100:1 leverage margin trade can empty an account if the trend goes sideways.

However, Chao did confirm that 5:1 leverage is a definite possibility, and pretty much anything between that and 100:1.

Binance is definitely trying to catch up with other exchanges with such a move, the sheer number of coins featured on the platform topped up with slightly higher leverage is going to be a very hard addition to beat by others.

At the moment, Binance’s leverage cap for crypto pairs is 2:1, which, although quite small, is still mostly avoided by traders due to market volatility and uncertainty.

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