The world’s leading cryptocurrency exchange, Binance, opens up for margin trading. The feature will be available on the exchange’s Margin Trading platform and it will allow traders to place leveraged orders.
Margin Trading Coming to Binance
For quite a long time now, BitMex has managed to establish itself as the prevalent Bitcoin margin trading exchange. However, this may be set for a change as the world’s leading cryptocurrency exchange, Binance, is stepping into the field as well.
Speaking on the matter was Changpeng Zhao, CEO at Binance, who said:
This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof. […] We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.
The feature will be available on the Binance Margin Trading platform which is hosted under a newly optimized interface. It allows users to access the traditional exchange platform and the Margin trading function under one roof. Moreover, the platform, dubbed Binance 2.0, provides an advanced trading engine which allows for better order matching.
In addition, it’s also easier for users to transfer funds from the Margin Wallet to their Primary Binance Wallet easily without any transaction fees. According to the official guide, your margin wallet balance will determine the amount of funds you can borrow with a fixed rate of 3:1 (3x). The marginable assets are the following:
Greater Profit Potential But Also Greater Risks
Indeed, margin trading is a highly requested service that Binance has so far been lacking. However, it’s also worth noting that this brings additional risks to the investor, as well as increasing his profit potential.
This was discussed by Yi He, Co-Founder of Binance, who said:
Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run. […] With margin trading being one of the most requested services from our community, this is a testament to the large market demand from retail and institutional traders alike and its promising possibilities in the future.
Cryptopotato reported that Binance allowed margin trading back in June. However, up until this moment, it was only available upon invitation.
The post It’s Happening: Binance Officially Opens Up Margin Trading appeared first on CryptoPotato.
Source: Crypto Potato