Binance's updated leverage and margin levels offer better trading options for selected trading pairs, bringing both potential benefits and risks to crypto traders.
The leverage and margin rates for USDⓈ-M perpetual contracts, including DAR, ME, CACHE, IOTALPT, ONE, and ZEN, will be updated with Binance Futures today, with effect from 08:15 UTC on December 19, 2024.
USDⓈ-M stands for USD-Margined Futures, a type of cryptocurrency futures contract offered on platforms such as Binance. It refers to a stable as USDT (Tentar) or USD (BUSD), which is pegged to the US dollar. These contracts are settled in these stablecoins, rather than traditional fiat currency or the underlying crypto asset.
Depending on the contract and position size, the revised leverage levels vary from 1x to 75x, allowing traders to fully benefit from their leveraged positions in the crypto market.
The new maintenance margin levels, which range from 1.00% to 50.00%, will affect traders' leverage positions.
Margin is the total amount of collateral required to open and maintain a trading position, whereas leverage is borrowing money to increase the size of a position. The possible result increases with leverage, but the chance of loss increases as well.
By varying the margin and leverage levels, Binance Futures continues to give traders more options to control risk and profit from volatile movements in the crypto market.
Traders must update themselves with Binance Future trade rules and the practice of risk management, particularly when working with highly leveraged instruments across multiple contracts and margin holdings.
