One of the world’s largest crypto exchanges, Binance, continues to expand its ecosystem by introducing its new Margin Trading platform. Binance is already well-known for a massive expansion that it saw in 2019 so far, including multiple arms that serve clients on various continents.
The exchange’s CEO, Changpeng Zhao (CZ) commented by saying that this is an extra step. CZ believes that it will help Binance move forward on its way of becoming an inclusive platform that will see to the need of retail and institutional traders alike. The exchange will provide a new platform in the crypto and financial services markets, and help improve trading results.
How does margin trading work?
Margin trading has a significantly higher potential to bring profit if we compare with traditional trading. This is because it offers leveraged positions, which can bring a much higher reward if the trader makes a good trading decision. Of course, the risks are also significantly higher, particularly when it comes to cryptocurrencies, which are infamous for their volatility.
As many might already know, margin trading in crypto space allows opening short and long positions. Traders would open long positions when they expect the asset’s price to rise, and short positions if they expect the price of assets to drop. Binance itself seems to be including one aspect of the financial industry after another in its ecosystem, simultaneously educating its users, informing them, and raising awareness of various options available to its community.
Binance 2.0 to bring forth new possibilities
According to Yi He, Binance’s co-founder, margin trading of cryptocurrencies poses significant risks, even now when the prices are rising. However, for those who get it right, it can bring substantial benefits. The exchange’s goal is to bring additional knowledge on risk management, as well as the option to perform margin trading. Coupled together, the Exchange believes that this move might bring significant long-lasting benefits.
Yi He added that margin trading used to be among the utmost demanded services in Binance’s community. Both institutional and retail traders demanded it, and now that it is finally here, it promises all kinds of opportunities in the near future.
The new Margin Trading platform is introduced under a new interface that allows traders to access the Margin function and the exchange itself. According to Binance, this was done just to serve better for fast-evolving crypto traders. They will have a familiar UI and only need one account. Binance 2.0 platform bring better order matching with the help of an advanced trading engine. For margin level calculations it also provides press indexes, which is expected to bring lower liquidations.
Users can quickly move their funds from their Binance wallet to their Margin Wallet, and back — all at zero cost. The new platform even allows users to choose collaterals from quite a long list of cryptocurrencies. Meanwhile, margin trading fees can be paid with Binance Coin, which brings yet another use case to BNB.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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