Binance Launches New Platform with margin trading! In an official blog post, Binance confirmed that their new platform would be released today.
But what are some reasons why Binance launches new platform with margin trading today? It could be to meet the full needs of institutional and retail traders’ needs. The announcement had Binance noting that margin trading, which allows exchange account holders to use their existing balances as collateral to open both long and short positions on crypto, can significantly increase profit potential when compared to regular trading.
Yi He, Binance co-founder, did address the possibility for greater risks, however, by saying:
“Through 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.”
Margin trading has been one the most requested features from Binance users. The rollout including margin trading is part of Binance’s upgrade to a newer 2.0 version of the platform. The announcement reveals that 2.0 features “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.”
Binance has also launched its no Margin Wallet, from which funds can be moved to the primary Binance wallet without fees. Six cryptos will have pairs linked to it – Bitcoin, Ether, XRP, Binance Coin, Tron, and Tether.
Binance follows OKEx in adding margin trading – however OKEx has 100x leverage while Binance offers up to 20. Other exchanges that offer margin is Kraken, GDAX, and BitMEX.
What do you think? Do you think you’ll be taking advantage of margin trading on Binance? We knew this was coming. Let us know on our Facebook page!
