Binance Launches Margin Trading Platform

Cryptocurrency exchange Binance announced on Thursday morning that it has launched its margin Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

Traders using the new service will be able to access Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term of 3:1 but a source with knowledge of the matter said that this is likely to increase in the near future.

Binance's strategy officer, Gin Chao, also told Finance Magnates at the end of last month that the exchange was going to provide more than 5:1 in leverage to its clients, suggesting that there is more to come from the company.

“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,” said Binance CEO Changpeng Zhao.

“We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”

Not alone

Zhao's firm first announced its margin trading platform in May. The firm inadvertently revealed that it would be providing the service when it published a screenshot of its latest platform update. That picture contained a "Margin" tab that users quickly picked up on.

Several other cryptocurrency companies have already launched margin trading services for their clients. Bitmex, for example, provides 50:1 leverage to its clients.

But though traders have eagerly embraced margin trading, it's been given a cold reception by regulators.

Last week, the Financial Conduct Authority announced that it was considering a ban on cryptocurrency derivative products for retail investors. That would effectively scupper any margin trading plans firms had for British investors.

The FCA is not alone. Regulators across the globe have been blaming high leverage for retail trading losses for several years now.

As such, if cryptocurrency firms are going to start providing the service to their clients, they can expect swift and harsh regulatory push back if they start wiping out clients with margin calls.