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The announcement came via a blog post where the product was explained in detail. The post stated that Binance’s new product is part of the company’s “effort to help push the industry forward and freedom of money”.

CEO of Binance, Changpeng Zhao “CZ”, in a statement said that the addition of margin trading will make it possible for his exchange to attend to both “advanced institutional traders and retail traders” under a single name – Binance.com.

Throwing more light on margin trading

Margin trading is a form of trade that simply enables investors to make good use of their positions. This means that interested investors can borrow funds from the exchange to increase the risks and therefore return potential. On Binance, users can leverage up to three times their trade size.

This new service on Binance only supports a few digital currencies for now, they include Bitcoin, Ethereum, Binance Coin, Tron, and Ripple’s XRP trading pairs. To make use of this service, users will have to transfer their funds between their main Binance wallet and their new margin wallet.

The announcement by Binance closely follows that made by Zhao about futures trading. At the Blockchain Summit in Taipei, Asia, CZ disclosed a few details about what Binance have up their sleeve for Binance futures, stating that the platform will accept leverage of up to 20x.

Crypto analyst Luke Martin pointed out that Binance is the first crypto exchange in history to journey into the four different types of exchanges: Derivatives, Regulated spot, Unregulated spot, and Decentralized exchange.

His tweet reads:

“Crypto exchange types:

1/Derivatives: margin, swaps, futures (Bitmex, Bybit, Deribit)

2/Regulated: BTC & major alt focus, fiat on-ramps (Coinbase, Gemini)

3/Unregulated: Alt focus (Binance, Kucoin)

4/DEX

Binance adding futures & becoming only exchange to be in every category.”

(Excerpt) Read more Here | 2019-07-12 19:44:37

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