With its new margin trading, Binance users can leverage their assets to borrow funds then trade with those funds.
Global cryptocurrency exchange Binance launched its margin trading platform today, July 11, 2019.
Using the new Margin Trading platform, users can leverage their digital assets in order to borrow funds from Binance. They can then trade the borrowed money — a practice that comes with high risk but also allows for amplified profit potential.
In a company announcement, Binance CEO Changpeng “CZ” Zhao said that the new platform will serve to amplify “trading results of successful trades.”
“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,” CZ said.
The new platform, called “Binance 2.0,” will have a newly optimized interface that will enable access to both the exchange and the margin function so that traders only have to use one account. This will also enable users to transfer funds between the margin wallet and their primary Binance wallet with no transaction fees.
Users can currently trade bitcoin (BTC), ether (ETH), XRP, binance coin (BNB), tron (TRX) and tether (USDT).
Yi He, co-founder of Binance, said that despite the great risks and benefits that come with margin trading over current cryptocurrency market and legacy platforms, the company is confident that its development, combined with proper risk management, will allow for greater benefits in the future.
“With margin trading being one of the most requested services from our community, this is a testament to the large market demand from retail and institutional traders alike and its promising possibilities in the future,” he said.
Binance recently announced the expansion of its trading platform to Singapore to allow users to buy and sell cryptocurrencies using the Singaporean dollar (SGB). The company also extended its platform to the European market in January 2019.