Binance, one of the largest cryptocurrency exchanges across the globe, has enabled margin trading flag on its platform, according to a Reddit post. Notably, this is not the first time Binance has been in the spotlight for news surrounding margin trading. A month ago, a programmer pointed on Reddit that the exchange was considering opening its doors to margin trading as they updated an Application Programming Interface [API].
Lifofifo, a Redditor, stated that Binance has enabled the margin trading flag for nine trading pairs. This includes: Bitcoin/ Tether, Binance Coin/ Bitcoin, Binance Coin/ Tether, Ethereum/ Bitcoin, Ethereum/ Tether, Tron/ Bitcoin, Tron/ Tether, XRP/ Bitcoin, and XRP/ Tether.
The user stated,
“Remember this post over a month ago? Research: Margin trading features found on Binance API. I took another look today and found that the isMarginTradingAllowed flag is now enabled for the following 9 pairs […] Perhaps, a sign that the margin trading is coming soon to Binance.”
Margin Trading refers to trading with borrowed money, where the user can participate in cryptocurrency trading with borrowed money/ leverage. Nevertheless, the borrower will have to pay some interest to the lender based on the funds borrowed.
An earlier Reddit post by Enriquejr on the same subject stated,
“However, API calls confirm that recently Binance has silently included two extra booleans between “icebergAllowed” and “filters”. This change has not been reflected on the documentation. However, this API update implies that Binance is considering the implementation of margin trading features.”
When this speculation spread across the cryptoverse in March 2019, Binance’s CEO Changpeang Zhao gave an insight into the matter, stating, “We future proof our API framework as part of our system upgrades. No dates”