July 12, 2019 | AtoZ Markets - The giant crypto exchange Binance has just announced the official launch of its margin trading platform.
The step comes in the exchange’s pursuits of expanding its services to meet the needs of institutional and retail traders, as indicated by exchange CEO Changpeng Zhao last May.
The exchange, which suffered a major hack incurring $41 million in losses last May, notes today that margin trading can significantly amplify profit potential as compared with regular trading.
Margin trading allows the exchange’s accounts holders to use their existing balances as collateral to open both long and short positions on crypto assets, while it still stands a risk as per the exchange’s co-founder Yi He, 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.”
Binance margin trading platform had been in demand
Yi He explained that margin trading had been “one of the most requested services from our community.” Prior to the exchange’s new service launch.
To dive a bit vaster into the technical part of the new service, margin trading support is being hosted alongside Binance’s legacy platform as part of a new, version 2.0 platform, which introduces “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.”, as per the ad blog.
A route between the new platform and the primary one has been created through a “Margin Wallet”, from which the user can move the funds to the primary Binance Wallet, all without fees.
The exchange also issued the details of users’ choice of collaterals, marginable assets and pairs have been released, extending across six cryptos: Bitcoin (BTC), Ether (ETH), XRP, Binance Coin (BNB), Tron (TRX), and Tether (USDT).
On July 2, AtoZ Markets reported that Binance future trading platform allows 20x leverage.
“Binance will be launching a futures platform very soon. I don’t have the exact date yet. The simulation test version will be live in a few weeks” as per the Founder and CEO of Binance, Changpeng Zhao, at the time.
The announcement drew the users' and crypto community's attention to start tweeting of Binance Future trading platform.
Accourding to Pomp, the Co-founder & Partner at Morgan Creek Digital, “Binance will first support BTC/USDT trading pair with 20x leverage as seen in the screenshot shared by Binance. More trading pairs and leverage will be announced in the future after the launch.”