Binance CEO announced that the exchange had executed its first margin trading clearance for Bitcoin’s short position. Changpeng Zhao took advantage of the time to educate traders of all categories about responsible behavior towards high risk trading.
We had our first Margin liquidation today. Guess what, it was a #BTC short.
Do not bet against bitcoin, and do not bet again b …
– CZ Binance (@cz_binance) June 24, 2019
Profitable but risky!
Margin trading is the new “golden chase” among trappers in the crypto market. This trading style is popular in traditional, but relatively new markets in the crypto industry.
Volatility of cryptomonas means that the winning potential is very high, but the risks are just as great.
The marginal trading technique involves borrowing funds from a broker or exchange platform to trade financial assets. The purpose of this trading system is to maximize profit.
If the transaction generates profit, the trader is required to return the borrowed amount and the transaction fee. In case of losing, the trader risks to liquidate all funds held and used warranty – liquidation margin trading
He did not bet against Bitcoin
Zhao announced on Twitter that the first trading margin trading was a so-called Bitcoin short. The trader in question considered that Bitcoin would fall and was contradicted by reality. In the last 24 hours, the BTC has reached this year’s record $ 11,286 according to CoinMarketCap.
CZ urged traders not to bet against Bitcoin in the long run and warned of the risks involved in margin trading. Binance has decided to offer the margin trading option this year and is currently testing this service.
Upward trend for Bitcoin
Bitcoin has recently risen, exceeding the resistance level of $ 11,000 and reaching close to $ 11,400. Subsequently, a correction of up to $ 10,600 was recorded and again began to increase.
When the price fluctuates rapidly this way, the temptation for traders to take on major risks is much greater. If the decisions taken are not correct, the losses can be significant.