Binance Breaks Ground to Announce 20x Leverage Bitcoin Futures Trading

The world's biggest cryptocurrency exchange is now offering leveraged trading with a bitcoin product. | Source: Shutterstock

Binance will add leveraged futures trading to its cryptocurrency exchange platform within weeks. That’s according to a keynote speech delivered by CEO Changpeng Zhao at the Asia Blockchain Summit on Tuesday.

The new feature will allow users to open long and short positions on bitcoin’s price movements with up to 20x leverage.

The market for bitcoin derivatives and leveraged trading is clearly exploding. As reported yesterday, crypto derivates platform BitMEX recorded $1 trillion trading volume in the last 365 days. Binance is hoping to muscle in on this demand for high-leverage trading.

A game changer

In two short years, Binance has established itself as the largest cryptocurrency exchange by trading volume. By adding futures trading, Binance expands its dominance over rival exchanges. Users can not only get exposure to bitcoin, but also bet against its price movements, known as shorting.

By adding leveraged trading at 20x, users can also amplify their gains. It comes after the exchange recently revealed plans to enable margin trading.

The new features will add significant liquidity to the bitcoin trading ecosystem and draw yet more sophisticated traders. Changpeng Zhao, better known as CZ, said the futures trading platform will start testing in the coming weeks, initially on BTC. 

As trader and analyst Luke Martin explains, this move expands Binance’s authority in the exchange world. The crypto giant has recently launched fiat on-ramps, futures trading, and a decentralized exchange. Binance is cornering the market in every niche.

Bitcoin futures volumes at record highs

The timing couldn’t be better for CZ and Binance. Bitcoin futures volumes at the Chicago Mercantile Exchange (CME) hit record highs in consecutive days last week. While leading crypto derivatives platform BitMEX boasted $16 billion trading volume in one day.

The demand for bitcoin futures trading is racing. As the leading crypto exchange in the industry, Binance is likely to add fuel to the fire.

Last modified: March 4, 2021 2:37 PM

Ben Brown: Ben is a journalist with a decade of experience covering financial markets. Based in London, UK, his writing has appeared in The Huffington Post and he was Chief Editor at Block Explorer, the world's longest-running source of Blockchain data. Reach him at Twitter at _Ben_Brown. Email ben @