#bnb
50x leverage: the deadly weapon to lose everything in the blink of an eye!
Let's be clear: a 50x leverage is like playing with fire in a barrel of gasoline. Binance offers this speculative bomb to traders eager for quick gains. But if the market turns sour, liquidation is almost guaranteed.
The details of the new perpetual contracts are enlightening:
FUNUSDT: opening on March 31 at 11:30 AM
MLNUSDT: opening on March 31 at 11:45 AM
Maximum leverage: 50x
Maximum funding rate at launch: ±2.00%
Frequency of funding fee payments: every four hours
In summary, these new pairs are not for the faint of heart. The promise of quick gains is counterbalanced by the colossal risk of instant losses.
Adjustments to be expected: a high-risk market!
Binance retains the possibility to modify the contract specifications based on market conditions.
In practical terms, this means that funding fees, confirmation sizes, leverage, and margin requirements can vary without notice. In other words, the trading environment can become even more unstable.
This flexibility for Binance is a double-edged sword for users, who risk being trapped by rule changes while in position.
These new contracts will also be available for Futures Copy Trading within 24 hours of launch.
The idea is appealing: to copy the moves of experienced traders. But what happens when those same traders make mistakes? Copying then becomes a collective nightmare.
Naive users could be drawn into strategies that are too risky for their profile, simply because following “experts” seems more reassuring than making their own decisions.
Once again, Binance is banking on adrenaline.
By launching these pairs with such high leverage, Binance is playing with traders' desire to make a master move.