Binance officially launched one of the most eagerly awaited products today: margin leverage. Crypto traders will initially have access to 3:1 leverage with higher levels are expected to come.
When asked about the milestone, Binance CEO replied :
“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.”
On the other hand, Binance co-founder Yi He, stated:
“Though the current cryptocurrency market and legacy platforms for margin trading pose greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realise greater benefits in the long run”.
Changpeng Zhao announced that the service is now available on BTC, ETH, XRP, BNB, TRX and USDT pairs. In addition, the proposal of value is really attractive as Binance is only charging 0.02% on each trade.
Traders can expect the number of coins and the margin to increase even further by the end of the month, as Binance’s strategy officer, Gin Chao, stated in a Finance Magnates interview that: “the exchange was going to provide more than 5:1 in leverage to its clients”. On June, the Chao affirmed that a 20x leverage was on its way, and traders are also looking forward to seeing that progress.
The new margin trading platform has been optimised to provide useful tools for both, beginners and experienced traders. The 2.0 version has an advanced engine for critical order placing and margin level calculations. Also, the platform will allow users to transfer funds from their main Binance Wallet without charging extra commissions.
One important element to highlight is that existing Binance users will need to pass through an ID check if they haven’t, as well as setting up two-factor authentication for the Margin Trading wallet.
If you want to learn more about Margin Trading in Binance, the exchange has published a complete guide for beginners, click here to get redirected to the guide.
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