Binance Launches Margin Trading on Upgraded Platform

Fredrik Vold
Last updated: | 1 min read

The major crypto exchange Binance launched margin trading on an upgraded version of its trading platform, dubbed Binance 2.0, today. According to the company, the new feature will allow traders to take on leveraged positions both short and long in a number of trading pairs.

Source: iStock/BeeBright

Maximum leverage with Binance is set to 1:3, which means that for every 1 BTC (or other cryptocurrency) deposited as collateral, 2 more can be borrowed from the exchange. Funds used as collateral for margin trading must first be moved to a dedicated Margin Wallet, which the company says can be done free of any transaction fees.

In addition to a slightly upgraded user interface that allows access to both the regular exchange and the new margin feature, the upgraded trading platform reportedly also comes with a new trading engine for better order matching.

Binance first started talking about the introduction of margin trading on its platform back in May this year, after CEO Changpeng Zhao posted screenshots of the company’s upgraded trading platform to Twitter.

However, the new feature has attracted a fair share of warnings from experienced traders, saying new traders should be extremely cautious when trading with leverage. Without a solid trading strategy and proper risk management, an entire trading account can quickly be wiped out by a leverage trade moving in the wrong direction. For now, margin trading with Binance is not available to residents of the USA, Canada, Japan, South Korea, and some other jurisdictions.

Several other crypto exchanges already offer margin trading on their platforms, including Coinbase Pro, Kraken, and Bitfinex.

Speaking at the Asia Blockchain Summit 2019 in Taipei recently, the CEO also revealed that Binance plans to introduce futures trading soon, similar to what crypto futures exchange BitMEX is already doing. According to the CEO, futures trading on their platform will come with up to 20 times leverage.

Watch Changpeng Zhao discussing Binance expansion in the USA, Binance DEX, market making and initial exchange offerings: