Binance updates collateral ratio and leverage parameters for cross margin and portfolio margin trading.
Macro & Markets ·
Binance has updated collateral ratio and leverage parameters for its cross margin and portfolio margin trading offerings, according to an announcement posted on the exchange's support page. The adjustment modifies the risk and borrowing mechanics available to traders using these margin trading modes.
Cross margin and portfolio margin are leverage trading features that allow users to borrow funds to amplify position sizes, with collateral ratios and maximum leverage levels determining how much capital can be borrowed against deposited collateral. Changes to these parameters affect both the risk exposure traders can take on and the capital efficiency of their positions.
The specific collateral ratios, leverage caps, and which assets are affected by the update are not detailed in the available material. The date of implementation and any phase-in period for the changes also remain unclear.