Leading cryptocurrency exchange Binance has in a blog post on July 11, announced the launch of its version 2.0 trading platform with support for margin trading.
Binance had in a previous report in May, disclosed that margin trading was soon to be released and would offer margin trading with leverage of up to 20x.
However, in the announcement made by the exchange today, the leverage provided for the version 2.0 margin trading platform is just 3x. In a tutorial, the firm stated that:
“Your Margin Wallet balance determines the amount of funds you can borrow, following a fixed rate of 3:1 (3x). So if you have 1 BTC, you can borrow 2 more.”
In addition, Binance noted the margin trading is more beneficial for crypto traders compared to regular trading, as margin trading allows traders increase their chances of making more profits than with regular trading.
While noting the benefits as well as the risks associated with margin trading, the co-founder of Binance, Yi He, 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.”
The co-founder, also stated that margin trading has been “one of the most requested services from our community.”
Also, the announcement noted that margin trading will be available in six cryptocurrency pairs, which include: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), Tron (TRX) and Tether (USDT). Binance further revealed that the version 2.0 margin trading platform will feature “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.”
A specialized “Margin Wallet” as tagged, will also enable users move their funds from their margin to their primary Binance wallets at zero transaction fees.
Speaking on the launch of the margin trading platform, Binance CEO, Changpeng Zhao, (CZ) said:
“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.”