#BinanceTurns8

Understanding Tier in Leverage & Margin

Tier is a system for grouping positions based on contract size (position brackets) in derivative trading.

Each tier has different maximum leverage limits, minimum margins, and margin amounts.

The higher the tier (larger position), the lower the leverage provided and the higher the required margin.

The goal is to manage risk and maintain market stability, especially when facing high volatility.

For example, Tier 1 with positions up to 300,000 USDT has leverage up to 125x, while Tier 5 is limited to only 25x.