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Binance updates calculation method of daily BNB holdings for margin trading

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Binance ups its game by updating the calculation method for its margin trading fraternity. Users claim that it may be a positive twist on ongoing developments.

Binance and Changpeng Zhao have been in the news multiple recently due to several updates and developments. This decision to escalate rampant developments in the space comes on the back of a growing need by the user base to bolster the cryptocurrency trading economy. In a bid to make the trading ecosystem more airtight, Binance has decided to update its calculation method of daily BNB holdings for margin accounts.

The world’s largest cryptocurrency exchange claimed that the process started from December 12, where the sum of the hourly snapshots of net BNB balance in both master and sub-account margin accounts begin getting divided by 24.

Users have also been asked to note that the net BNB balance will be the balance after removing the borrowed BNB and the interest from the total BNB balance. Binance will calculate the user data by recording hourly snapshots taken of margin account balances.

The last time the calculation mechanism was changed was almost five months back. During that change, Binance decided to switch from the balance being recorded in a single snapshot to the daily average BNB balance. The total daily average BNB balance was supposed to be calculated by taking the sum of multiple factors. This included the daily average spot account balance, daily average margin account balance, daily average sub-accounts balance, the daily average Binance futures accounts balance as well as the fiat account balance.

The recent move by Binance was appreciated by fans of the exchange, with xtrader3 claiming that if someone shorts BNB margin to maintain IEO-s, it may not be fair for HODLers.

Binance was also in the news recently when Leslie Tam, the former head of trading at the exchange, revealed that he had joined CoinFlex as its new chief strategy officer. He was earlier responsible for Binance’s OTC trading operation and is speculated to focus on CoinFlex’s physically delivered futures contracts. The exchange Is set t0 offer futures contracts at 30 cents, provided that Libra launches by December 2020. CoinFlex had stated:

“Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”

Disclaimer: The presented information is subjected to market conditions 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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Binance 2.0 sees official launch: Margin trading now available to exchange’s users

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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.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.