diff --git a/freqtrade/exchange/exchange.py b/freqtrade/exchange/exchange.py
index e5f897c2a..f620b5bc1 100644
--- a/freqtrade/exchange/exchange.py
+++ b/freqtrade/exchange/exchange.py
@@ -2527,7 +2527,6 @@ class Exchange:
         self,
         leverage: float,
         pair: Optional[str] = None,
-        trading_mode: Optional[TradingMode] = None,
         accept_fail: bool = False,
     ):
         """
diff --git a/freqtrade/exchange/kraken.py b/freqtrade/exchange/kraken.py
index 8a4f7f7e0..b1a19fa69 100644
--- a/freqtrade/exchange/kraken.py
+++ b/freqtrade/exchange/kraken.py
@@ -158,7 +158,6 @@ class Kraken(Exchange):
         self,
         leverage: float,
         pair: Optional[str] = None,
-        trading_mode: Optional[TradingMode] = None,
         accept_fail: bool = False,
     ):
         """
diff --git a/tests/exchange/test_binance.py b/tests/exchange/test_binance.py
index ba786bb3b..8ada089bd 100644
--- a/tests/exchange/test_binance.py
+++ b/tests/exchange/test_binance.py
@@ -555,7 +555,6 @@ def test__set_leverage_binance(mocker, default_conf):
         "set_leverage",
         pair="XRP/USDT",
         leverage=5.0,
-        trading_mode=TradingMode.FUTURES
     )
 
 
diff --git a/tests/exchange/test_exchange.py b/tests/exchange/test_exchange.py
index 6e15abaf4..586f023b4 100644
--- a/tests/exchange/test_exchange.py
+++ b/tests/exchange/test_exchange.py
@@ -3868,29 +3868,6 @@ def test_get_stake_amount_considering_leverage(
         stake_amount, leverage) == min_stake_with_lev
 
 
-@pytest.mark.parametrize("exchange_name,trading_mode", [
-    ("binance", TradingMode.FUTURES),
-])
-def test__set_leverage(mocker, default_conf, exchange_name, trading_mode):
-
-    api_mock = MagicMock()
-    api_mock.set_leverage = MagicMock()
-    type(api_mock).has = PropertyMock(return_value={'setLeverage': True})
-    default_conf['dry_run'] = False
-
-    ccxt_exceptionhandlers(
-        mocker,
-        default_conf,
-        api_mock,
-        exchange_name,
-        "_set_leverage",
-        "set_leverage",
-        pair="XRP/USDT",
-        leverage=5.0,
-        trading_mode=trading_mode
-    )
-
-
 @pytest.mark.parametrize("margin_mode", [
     (MarginMode.CROSS),
     (MarginMode.ISOLATED)