Binance, the world’s leading cryptocurrency exchange, announced the launch of its Margin Trading platform on 11th July 2019. The platform was introduced to expand the companies trading possibilities just like the traditional markets do.
“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,” said CEO of Binance, CZ (Changpeng Zhao). “We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
The reason for introducing the platform was to enable higher profit potential because margin trading allows a higher potential than traditional trading for leveraged positions. However, this also has a higher risk because it is connected to the ups and downs of the cryptocurrency market. Margin trading in cryptocurrencies will offer two approaches –
- Long Position
This is based on the assumption that the price of the cryptocurrency or asset will grow over time
- Short Position
This is based on the opposite of that assumption; that the price of the asset will fall over time.
The aim of the platform is to open up the possibility of profit by employing the two positions in the correct manner with the help of the Margin Trading platform
“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,” said Yi He, co-founder of Binance. “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.”
Binance 2.0: One Platform, Two Functions
The Binance Margin Trading platform boasts a new interfaced optimized to allow users to use its exchange platform as well as Margin function seamlessly. The user will require only one account but will be able to access both platform under one login. The new platform also has a new trading engine that enables better order matching and press indexes for margin level calculations to enable lower liquidations.
The user can also easily move funds between the Margin Wallet and Binance Wallet without any transaction fees. They may also use altcoins as collaterals for Binance Margin and to pay for margin trading fees with Binance Coin (BNB).
Learn how Margin Trading on Binance works from Binance Academy’s guide:
About Binance Margin Trading
Binance Margin Trading allows users to leverage their digital assets as collateral to borrow funds from the Binance exchange to help them create leveraged trading by a margin and provide potential amplified gains within the cryptocurrency’s bear and bull markets. Learn more about Margin Trading on Binance:
Disclaimer From Binance
Please be mindful that margin trading is highly subjected to market risk, volatility, and complexity. It is a sophisticated product and you are highly advised to exercise prudence and caution. While Binance will do its best to give you a pleasant and secured trading experience, we will not be responsible for your losses incurred from your trading activities.
