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Crypto Exchanges FTX, Binance Limit Traders to 20 Times Leverage

July 26, 2021, 11:39 AM

Two of the biggest crypto exchanges are reducing maximum leverage on offer to traders.

The cap on both Binance and FTX Trading Ltd. will now be at 20 times, instead of 125 and 101, respectively, according to company statements.

In Twitter posts, executives cited consumer protection, with FTX’s Sam Bankman-Fried aiming to “encourage responsible trading.” Bankman-Fried said the average employed by traders is about two times their positions.

“This will hit a tiny fraction of activity on the platform,” wrote Bankman-Fried in a post. “While many users have expressed that they like having the option, very few use it.” ...