Adjusting Maximum Leverage in Futures Trading
To maintain market stability, the platform dynamically adjusts the maximum leverage for certain futures contracts based on market conditions and risk fluctuations.
1. Adjustment Example
For a specific futures trading pair, the initial maximum leverage allowed might be 100x. If the platform adjusts this to 50x, then all new orders for that contract will be limited to a maximum leverage of 50x after the adjustment.
Note:
i. Existing positions are not affected. However, any new positions opened after closing the existing ones will be subject to the new risk control rules.
ii. If an order exceeds the new maximum leverage, the order will not be placed. You must manually reduce your leverage to proceed.
2. Impact on Users
i. Risk and Margin Changes
Increased Margin: A lower leverage means more margin is required to place an order for the same position size.
Example: Initially, opening a 1 BTC futures position with 100x leverage requires 1% of the position as margin. After adjustment to a maximum of 50x leverage, the required margin increases to 2%.
ii. Trading Strategy Adjustments
High-Leverage Strategies: You may no longer use leverage beyond the adjusted maximum to amplify profits. Optimize position management or use tools like take-profit and stop-loss orders instead.
Margin Considerations: Allocate your funds wisely to avoid insufficient margin, which could prevent the opening of new positions.
iii. Handling of Existing Positions
There will be no forced adjustments to existing positions. Positions already held with leverage exceeding the adjusted maximum will remain. However, once closed, any new positions will be subject to the updated rules. New orders exceeding the adjusted leverage limit cannot be placed.
Recommended Leverage Reduction: During high market volatility, manage risk by lowering leverage or adding margin to secure your position.
3. Recommendations for Users
i. Prepare Before the Adjustment
Review your current positions. Navigate to “Futures Account” → “Positions” to check your leverage and margin ratios.
Assess your new risk exposure. Use the Margin Calculator to recalculate your liquidation price.
ii. Actions After the Adjustment
Adopt new strategies for your positions, such as manage your position size carefully to avoid failed trades due to insufficient margin.
To maintain your original position size, deposit additional funds to meet the adjusted leverage requirements.
Set stop-loss/take-profit orders or use advanced order types to minimize the effect of market fluctuations.
4. FAQs
Q1: Will existing positions exceeding the new maximum leverage be forcibly liquidated?
No. The adjustment only affects new orders. Existing positions are not affected.
Q2: What happens if I try to add to an existing position that exceeds the new leverage limit?
New orders must adhere to the updated risk control rules. Users must manually reduce leverage before adding to their positions. However, as reducing leverage can alter their risk ratio, they should first check for changes in their risk ratio to avoid margin shortages that could lead to forced liquidation.
Q3: Can I request to have the maximum leverage reinstated to what it was before?
Unfortunately, this is not possible at this time. The platform will evaluate market conditions dynamically and announce any updates as needed.
Q4: After the adjustment, can I still manually increase my leverage?
Yes, but you will not be able to exceed the system's updated leverage limits for that specific contract.
KuCoin Futures Trading Guides:
Thank you for your support!
The KuCoin Futures Team
Note: Users in restricted countries and regions cannot enable futures trading.