Exchange of cryptocurrencies According to FTX CEO Sam Bankman-Fried, the leverage trading limit has been reduced from 101X to 20X due to a lack of use.
High-leverage trading accounts for a small percentage of the exchange’s trading activity and is only employed by a small portion of its user base, according to Bankman-Fried. He pointed out that the exchange’s average leverage is only about 2X.
“And although we believe that many of the concerns [against] excessive leverage are off the mark, we also do not believe it is an important element of the crypto ecosystem, and in some circumstances, it is not a healthy part of it,” he added.
Bankman-Fried claimed that this is the direction in which the crypto business is moving and that his exchange is taking the first step in that direction.
“Again, this will only affect a small portion of platform activity, and while many users have indicated an interest in having the choice, very few actually utilize it,” he said. “And we believe it is time to move on from it.”