The cryptocurrency futures market caught my attention because it allows for taking advantage of market volatility. One of the key elements in futures trading is “leverage”.
Today, based on my personal experience, I would like to share about Binance's leverage restrictions and how to use them in practice.
If you haven't registered on Binance yet, sign up through the link below to receive a 20% discount on trading fees.
Not only new users but also existing users can receive a 20% discount on fees if they meet the following five conditions.
The guest already has a registered account at Binance.
The guest has never accepted an invitation before.
The guest's account has not made any trades or used Binance products in the last 180 days.
When the eligible guest opens the link and logs in, a confirmation window will appear.
The guest must click on [Now Binding] for the binding to take effect.
When I started trading futures on Binance, the first thing I noticed was that leverage could be adjusted up to 150x.
However, when I actually tried to trade, I found that the available leverage varied according to the asset and, in fact, the maximum I could set was restricted according to my account status. This was due to Binance's leverage restriction conditions.
At Binance, new users or accounts with low trading volume do not have immediate permission to use high leverage. In particular, new users in the first 60 days are generally limited to a maximum of 20x, and only after time passes or trading history accumulates will higher leverages be gradually released.
These leverage restrictions from Binance can be seen as a protective mechanism for risk management.
In addition, certain assets with high volatility or low market liquidity may have their maximum leverage adjusted by Binance itself at its discretion.
For example, BTC/USDT usually allows up to 150x, but newly listed altcoins are often limited to around 10–20x. This is also part of Binance's leverage restriction policy.
After understanding these restrictions, I realized that instead of recklessly setting leverage at high levels, it is better to adjust it carefully according to personal risk tolerance.
In my case, I usually trade around 3x to 5x. This way, even if the market moves against expectations, the risk of liquidation can be reduced.
In practice, setting leverage on Binance is simple. On the futures trading screen, you select the “Cross” or “Isolated” mode, then directly enter the leverage level or adjust it using the slider.
However, in Cross mode, all the balance of your account may be exposed to risk, so it is safer for beginners to practice first in Isolated mode.
Leverage can also be adjusted after opening a position.
However, while maintaining a position, only partial adjustments may be possible and in some cases, they are not allowed. Therefore, it is important to reflect well and set leverage before opening a position.
It should be noted that depending on the account status or market conditions, previously allowed leverage may be reduced.
Binance regularly updates its leverage restriction policies and announces this information in notices or on the trading screen itself, so it is important to keep the habit of checking frequently.
Additionally, trading with high leverage can result in instant total loss if unexpected price fluctuations occur, so an emergency response strategy should be prepared in advance.
When using leverage, it is essential to check the liquidation price and clearly define stop-loss conditions. The higher the leverage, the greater the potential profit, but the risk of loss also increases exponentially.
Therefore, for inexperienced investors, conservative leverage settings are safer. I myself have set leverage above 10x and suffered liquidation due to a sharp drop. After that, I switched to a strategy of using lower leverage and realized that consistent profit lasts much longer than quick profit.
In summary, Binance's leverage restrictions are a system designed to protect investors and are applied flexibly depending on account credibility, trading history, and market volatility.
Understanding these policies in advance and learning how to use them can help reduce unnecessary losses. For those interested in asset management like me, the most important thing is to understand leverage as a tool and use it prudently.
Ultimately, a cautious approach is the wisest investment strategy.