Coingape - 7/11/2019 9:16:20 AM - GMT (+0 )
Following the month of the speculations, the world’s well-known cryptocurrency exchange, Binance has officially and publicly launched its Margin Trading Service on July 11.
Despite margin trading carries a significant risk of funds or loss, many crypto exchanges have already rolled this service. Binance was on the exchange which hasn’t introduced this feature. According to the blog post of Binance, published on July 11, crypto traders can now access margin trading feature on Binance’s newly launched trading hub “Binance 2.0″.Binance Offcial Blog
For those who’re new to the concept of margin trading, “ it’s the form of trading where eligible traders will be able to borrow funds from the exchange to increase their leverage. It doesn’t always a potential way of trading; it comes with a greater risk due to volatility in the price of the cryptocurrency market. Talking about the newly launched margin trading feature, Binance CEO CZ states that;
“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,”
It was one of the long-awaited feature, request by Binance community. The new version, Binance 2.0 features an “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.” According to the reports, the exchange has launched a specific margin trading wallet without fees – wherein, traders from this wallet can send funds to their primary Binance wallet.
At the initial phase, the exchange has released limited crypto assets that will be used for margin trading – Bitcoin (BTC), Ether (ETH), XRP, Binance Coin (BNB), Tron (TRX) and Tether (USDT).
Earlier during Ask Me Anything (AMA) session, CZ responded to the rumors about margin trading. He clarified that the feature will be launched to a few of Binance clients, particularly large traders. However, the latest announcement states that the trading is live and is available to all eligible users. Cautioning about the risk that margin trading contains, co-founder of Binance Yi He said that;
“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,”
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com