The world’s largest cryptocurrency exchange Binance has today officially launched margin trading for “evolving cryptocurrency traders.”
Margin trading is trading with borrowed money, which comes with higher profit potential and greater risk. The exchange was preparing to launch the service over the past few months.
“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,” said Binance CEO Changpeng Zhao.
The service is being offered under the revamped platform “Binance 2.0,” claiming to allow users to move funds easily from the Margin Wallet to their primary Binance Wallet at zero transaction fees.
“Binance Margin provides the option to choose collaterals from a diverse spread of cryptocurrencies, also enabling users to pay for margin trading fees with Binance Coin (BNB),” the exchange added.
There are currently six supported cryptocurrencies - Bitcoin (BTC), ether (ETH), XRP, Binance coin (BNB), Tron (TRX), and Tether (USDT), with several pairs. Leverage available, however, is just 3x as compared to 20x expected before. "Your Margin Wallet balance determines the amount of funds you can borrow, following a fixed rate of 3:1 (3x)."