Binance Enables Up to 125x Leverage on Cryptocurrency Shorts

Binance offers its users the ability to short cryptocurrencies through margin trading and USDT-margined futures, providing up to 125x leverage on select pairs across over 1,400 trading pairs.

New Binance Futures accounts face a 20x leverage cap for the first 60 days after activation, with higher limits available after the restriction period, subject to Binance's eligibility requirements.

When shorting, users borrow cryptocurrency from Binance and sell it at the current market price. When the price drops, they repurchase the asset at the lower level, profiting from the difference between the selling and buying prices.

Binance uses an insurance fund to absorb losses from liquidated positions before auto-deleveraging activates, forcibly reducing profitable opposing positions when the insurance fund is insufficient.