Is Binance gearing up to launch margin trading?

02 May, 2019 | Updated: 02 May, 2019
by Richard Allen
News
Is Binance gearing up to launch margin trading?

Binance, one of the world’s largest cryptocurrency exchanges, has reportedly enabled margin trading on its platform, according to a Reddit post.

This isn’t the first time Binance has been in the spotlight regarding rumors of margin trading. Last month, another Redditor noted that the exchange was mulling the idea of opening its doors to margin trading as they updated an Application Programming Interface (API).

Redditor Lifofifo posted that Binance has enabled margin trading for nine trading pairs in the Binance API. This includes BTC/USDT, BNB/BTC, BNB/USDT, ETH/BTC, ETH/USDT, TRX/BTC, TRX/USDT, XRP/BTC, and XRP/USDT.

The user states that they took a look at a month-old post titled Research: Margin trading features found on Binance API and found that the isMarginTradingAllowed flag is now enabled for the nine trading pairs. The user states that this may be a sign margin trading is coming to Binance.

Margin Trading is trading with borrowed money, allowing the user to participate in trading without actually having the funds. This form of trading comes with interest attached which the borrower has to pay back to the lender based on the funds borrowed.

Binance CEO Changpeng Zhou tweeted in response to the Reddit post:

At the time of writing, Binance Coin is up 8.40%, possibly a result of CZ’s tweet. BNB is trading at $23.59.

 BNB/USDT chart provided by Tradingview

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