Global cryptocurrency exchange Binance has officially launched its much-anticipated platform feature Margin trading according to a press release on July 11th. Binance calls it a service for “evolving cryptocurrency traders.” The leading cryptocurrency exchange has been slowly rolling out the feature to its users over the past months culminating in the official launch today. Effectively all accounts are now able to access margin trades in the newly launched Binance 2.0 platform interface.
With margin trading, users will be able to trade on borrowed funds which significantly increases their trading position and therefore increases the potential of greater gains but consequently increases the risks of liquidation just as much. With margin, traders are able to speculate on either price movements of their favorite digital assets. There are two options to speculate upon: longs for when the user anticipates a price increase and shorts for when the reverse is anticipated.
Changpeng Zhao (CZ), Binance’s CEO expressed his enthusiasm on the official launch of the margin trading feature saying in a statement that,
“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 first admitted to the development of the feature back on May 8th this year following a swirl of rumors that the company was working on the same. Talking during an AMA on Periscope, he said
“Yes, we are working on a margin [trading] system that’s rolling out actually very, very soon. We are going to first roll out [this system] to a few of our key clients, the large traders so that they can help us test.”
Over the past few weeks, the exchange has been teasing its fans with images on Twitter of the new Binance 2.0 interface with margin trading enabled and now all users will be able to witness the efficiency of the platform.
Binance co-founder Yi He stated that margin trading was one of the most requested new features on the leading exchange, a feature that was promised in the Binance whitepaper from back in June 2017 launch.
“This is a testament to the large market demand from retail and institutional traders alike and its promising possibilities in the future,” she said.
According to the Thursday release, users will be able to move their funds between their margin accounts and their normal spot trading accounts without incurring any transaction fees. Users will also be able to make fee payments through the native platform token Binance Coin [BNB].