Binance, the world’s largest cryptocurrency exchange by trading volume, has officially launched a margin trading platform.
After strong demand from traders, the Binance 2.0 platform will allow users to leverage their trades across six digital assets: Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), XRP, Tether (USDT), and Tron (TRX).
#Binance Launches Margin Trading service for Evolving Cryptocurrency Traders
— Binance (@binance) July 11, 2019
Margin trading on Binance
The new margin functionality allows Binance users to amplify their trades by borrowing funds.
For example, if you trade $1,000 with 2x leverage, you’re effectively trading with $2,000. While this allows you to leverage your gains, the risk is higher, as the downside is also amplified.
The move expands Binance’s dominance in the crypto exchange arena, pitching it as competitor to platforms like BitMEX which offers 100x leverage on bitcoin derivatives. In a blog post, Binance CEO Changpeng Zhao 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.”
Margin trading will be integrated into a new Binance 2.0 platform. The platform is a major upgrade from the existing system, with an optimized interface and advanced trading engine for better order matching.
Binance 2.0 will initially support margin trading across 9 asset pairs, allowing users to stake collateral with Bitcoin (BTC),