Binance, the world’s largest cryptocurrency exchange by trading volume, today announced the launch of its margin trading platform, a service it says will support institutional investors. Users will now be able to choose from a spread of six of the leading cryptocurrencies to make margin trades: Bitcoin, Ethereum, XRP, Binance Coin, Tron and Tether.
Says Binance CEO Changpeng “CZ” Zhao,
“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 can be used to open both long and short positions, where a long position reflects an assumption that the price of the asset will go up, while a short position reflects the opposite. By allowing users to borrow funds from the broker, margin trading exposes traders to potentially huge gains as well as devastating losses.
According to the announcement, the Binance Margin Trading platform is hosted under a hybrid interface that accesses its exchange platform and the margin function for advanced crypto traders who want both functions under one user account. The 2.0 platform also features a trading engine for better order matching and margin level calculations to enable lower liquidations.
Users will be able to move funds from their margin wallet to a primary Binance wallet without any transaction fees and pay for margin trading fees with Binance Coin (BNB).
Binance joins several other crypto exchanges offering margin trading including BitMEX,