Binance margin trading – A new trading option for Binance

Last week, Binance launched the margin trading option, expanding its services to professional traders.

The service is available on other platforms, but Binance is one of the largest exchanges in the world. The company pointed out that the main reason is expanding services for several types of investors:

“This is another step in offering a Cryptomonas trading platform with extensive services to both insitutive investors and retail traders under the same roof. We offer a new instrument on financial markets and cryptos to help amplify the results of successful transactions,

said Binance CEO Chang Changg Zhao.

In turn, Yi He, one of Binance’s co-founders, said margin trading was one of the most demanded user services.

Binance margin trading with leverage 3: 1

Margin trading can certainly amplify the results – both in terms of earnings and losses. It therefore poses a greater risk to investors.

This is especially true when dealing with cryptomonas because they can be extremely volatile.

Binance offers leverage of 3: 1, which is a relatively low value compared to other platforms offering similar services. In addition to these, four other cripto exchanges currently offer margin trading with leverage from 2.5 to 100. BitMEX, for example, offers leverage of 100: 1, Kraken of 5: 1, while Poloniex of 2.5: 1.

Margin trading involves a 0.02% commission for Bitcoin (BTC), ethereum (ETH), XRP, Tron (TRX), and Tether (USDT) initially. For the BNB, the commission will be 0.01%.

Separate wallets and commissions payable to the BNB

The new Binance 2.0 platform also allows its users to transfer funds from the main portfolios to the dedicated trading margin. The Exchange offers the option to guarantee transactions with a large number of cryptomonas and the commissions with Binance Coin (BNB).

In any case, the margin trading results are dependent on the volatility of cryptomonas, which may be extreme. It is a sophisticated product that requires extensive technical knowledge and caution and caution is recommended when using it. Earnings can be colossal, but so do the losses.