Binance will set a leverage limit for margin trading “somewhere between x5 and x100”
Binance Chief Strategy Officer Jin Chao Shared Some New Details on Margin Trading.
When asked by Finance Magnates about the maximum leverage, Chao said with a smile, “You mentioned 5: 1. I am ready to confirm that we will certainly be able to implement this. At the same time, we are not going to provide access to 100: 1, as they do in some other places. We’ll do something in between “.
Chao also assured the interlocutor that Binance will try to limit the access of inexperienced traders to high-risk margin positions..
“Firstly, we will develop Binance Academy. There are already a lot of educational materials, but we will add more. In addition, we are planning to introduce several levels of leverage. There will be no such thing that someone can come in and immediately take advantage of the maximum leverage. You will have to prove that you are a sufficiently competent or experienced trader, – he said, adding that the exchange will require confirmation in the form of trading statistics. – Perhaps we will look at the data on the frequency of transactions and their volumes. This way we will be able to understand whether the trader has sufficient experience and whether he understands what he is doing. I’m not sure if we will introduce limits on the percentage of collateral, but it is possible “.
Binance’s chief strategy officer says his company will not resort to dubious market-making practices and trade against its users: “We don’t market-maker ourselves. In margin trading, we will use large marketers who already work with us. Some of them started to perform their functions in test mode “.
During the interview, Chao also revealed that Binance is in talks with Facebook about the Libra cryptocurrency project..
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