Prominent cryptocurrency exchange, Binance, officially launched its margin trading platform to provide its users leveraged trading features.
The latest expansion of the world’s largest cryptocurrency exchange, will offer its users a relatively greater level of profit compared to traditional trading for leveraged positions. However, this profit comes at a risk due to the volatile crypto market.
Binance aims at apprising conscious trading on margin accounts so that users incur more profits, experience lower risks and more portfolio diversification. The exchange has been working on the latest feature for the past few months and subtly revealed its launch on Twitter, in May.
Changpeng Zhao aka CZ, CEO of Binance expressed his views on the expansion.He said,
“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.”
Users can access the latest feature under the exchange’s redesigned platform, Binance 2.o, which would enable the users to transfer funds from the Margin Wallet to their Binance Wallet with no transaction fee. The feature currently supports six currencies, including BTC, ETH, BNB, TRX and USDT with various pairs and the available leverage is only 3x as compared to 20x expected earlier.
The co-founder of Binance, Yi He, detailed that the latest addition, margin trading was greatly requested by the users of the exchange and suggested that it was a “testament to the large market demand from retail and institutional traders.” He said,
“Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run.”
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