The world’s leading cryptocurrency exchange, Binance, has enabled margin trading. The feature is available on a dedicated margin trading platform, and it will allow traders to place leveraged orders. 

Margin Trading Coming to Binance

For quite some time, Bitmex has managed to establish itself as the premiere Bitcoin margin trading exchange. This may soon change, as the world’s leading cryptocurrency exchange, Binance, is stepping into the field.

Changpeng Zhao, the CEO of Binance, stated:

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 is available on the Binance Margin Trading platform, which sports a newly-optimized interface. It allows users to access both the traditional exchange platform and the margin trading function. Moreover, the platform, dubbed Binance 2.0, provides an advanced trading engine which allows for better order matching. 

In addition, users can easily transfer funds from the Margin Wallet to their primary Binance Wallet without paying any transaction fees. According to the official guide, one’s margin wallet balance will determine the amount of funds they can borrow with a fixed rate of 3:1 (3x). The marginable assets are:

  • BTC
  • ETH
  • XRP
  • BNB
  • TRX
  • USDT

Greater Profit Potential but Also Greater Risks

Indeed, margin trading is a highly requested service that Binance has so far been lacking. However, this brings additional risks to the investor, as well as increased profit potential. 

This was noted 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 back in June that Binance was allowing margin trading. However, until now, it has only been available upon invitation. 

The post It’s Happening: Binance Officially Opens Margin Trading appeared first on CryptoPotato.

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