Binance is doubling the maximum leverage available for XRP and Ripple USD (RLUSD) from 5x to 10x, effective Friday, Aug. 21, at 6:00 a.m. UTC. The exchange says the change will alter collateral weightings under its Unified Maintenance Margin Ratio, and it is telling traders to rebalance positions before the deadline.
Binance will raise the maximum leverage on XRP and RLUSD to 10x, up from 5x, starting Aug. 21 at 6:00 a.m. UTC, the exchange announced. The technical work needed to roll out the change is expected to take about 30 minutes.
XRP joins Binance's top liquidity tier
The move puts XRP and RLUSD on equal footing with BNB, SOL, ADA, and DOGE, shifting Ripple's products into Binance's highest liquidity category under its Portfolio Margin system. With RLUSD also moving to 10x, traders can use the stablecoin as collateral to scale up XRP positions.
Traders must rebalance before the deadline
Binance says the new multipliers will directly affect the Unified Maintenance Margin Ratio, so it is urging traders to recalculate collateral weights before Friday. The leverage increase improves the collateral efficiency of XRP and RLUSD, but the exchange notes that tokens on its reduced-leverage list, such as ZRO or KMNO, will see their collateral value decline.
Traders should also check open positions and adjust margin ratios before 6:00 a.m. UTC on Aug. 21 to avoid automatic order cancellations or forced liquidations triggered by the sudden shift in collateral weights.
Higher leverage cuts both ways
Doubling the limit also raises the level of risk in the market. At 10x leverage, even a small price move against a position can trigger immediate liquidation, multiplying potential profits as fast as potential losses. Without strict risk management and an understanding of the mechanics behind the margin ratio, aggressive leveraged trading turns from systematic trading into a gamble in which the mathematical edge stays with the platform.
Source: U.Today
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