Coinspeaker Binance Increases Trading Limits Today and Expands BFUSD Features for Futures Users

Binance has announced a substantial increase in position limits for its futures platform users, specifically for those trading with BFUSD. The upgrade, scheduled for December 17, 2024, will affect all membership tiers, from basic accounts to premium traders.

The exchange’s new framework nearly doubles the previous capacity across users in VIP levels 0 to 9. Entry-level traders will now enjoy an expanded limit of 400,000 BFUSD, while top-tier participants can leverage positions up to 8 million BFUSD — a significant jump from the previous 5 million ceiling.

Binance stated in the announcement that each master and sub-account will have its own separate position limit for BFUSD, ensuring that they do not affect each other’s limits. Virtual sub-accounts cannot buy BFUSD directly, but users can purchase it through their main accounts and transfer it using a specific command. Users are advised to check the Binance Futures trading rules for real-time updates on maximum position limits. Binance noted:

“The maximum position limit for each master account or sub-account is independent of each other;

To view more real-time changes to the maximum position limit, please refer to the trading rules;

API is not supported for purchasing or redeeming BFUSD;

Virtual sub-accounts cannot purchase BFUSD.

However, users can purchase BFUSD from their main account and transfer it to the virtual sub-account.”

This development by Binance reflects the growing interest in cryptocurrency trading among both institutional and retail investors. The adjustment could help traders increase their profits and refine their strategies.

Binance emphasized that while these changes present new opportunities, adhering to standard risk management principles remains crucial. The platform continues to prioritize regulatory compliance and responsible trading practices, encouraging users to comply with the relevant laws and regulations in their respective countries.

What Is BFUSD?

BFUSD is a reward asset from Binance designed to give users the opportunity to return eligible balances in their futures accounts. It can also serve as margin for futures trading in the multi-asset system while earning rewards. Additionally, BFUSD can be redeemed for USD stablecoins, making it a stable and flexible option for crypto traders.

Binance Futures users holding BFUSD are entitled to daily rewards in USD stablecoins at the applicable reward rate on their eligible balances. Users can also use BFUSD as a margin to trade U-margin contracts after enabling the multi-asset mode. However, there are risks to holding BFUSD.

For example, if the funding rate for a short futures position is negative, it may result in costs for the BFUSD hedge portfolio, meaning holders might not earn rewards. Nonetheless, the base and boost rates will always remain positive, and Binance can cover funding costs using the BFUSD reserve fund.

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Binance Increases Trading Limits Today and Expands BFUSD Features for Futures Users