Binance launches margin trading: "$15,000,000 borrowed so far," says CZ

11 Jul, 2019 | Updated: 11 Jul, 2019
by Will Heasman
Update
Binance launches margin trading: $15,000,000 borrowed so far, says CZ

 Today, Binance has officially launched its margin trading platform, which so far has accumulated over 10,000 account holders and has lent out a cool $15,000,000 to users so far…

An official blog post by the Binance team relays that the highly anticipated margin trading facility is finally here, coming part and parcel of the new Binance 2.0 platform. Traders have been waiting with bated breath for the platform which will allow users 3x leverage against their crypto holdings which are used as collateral.

The new trading service was launched alongside Binance 2.0, a reinvigorated trading platform which according to the announcement features “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.”

Speaking on the inception of margin trading on Binance, exchange head, Changpeng “CZ” Zhao, noted that the inclusion of the margin trading service within Binance 2.0 would widen its demographic to institutional as well as retail investors:

“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.”

A lot to gain, a lot to lose…

While the benefits of ‘amplifying,’ successful trades certainly exist, so too do the drawbacks which include the complete and total loss of all collateral held if the trade goes awry.

The dangers of margin trading were noted by Binance co-founder Yi He:

“Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run.”

Growing fast

Following Binance's margin trading reveal, CZ also relayed some of the figures of the nascent service, stating that over 10,000 accounts had been registered and $15 million had been borrowed already….

Are you a fan of margin trading? Let us know in the comments below!

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