The amount of funds you can borrow will be fixed. “Your Margin Wallet balance determines the amount of funds you can borrow, following a fixed rate of 3 : 1. So if you have 1 BTC, you can borrow 2 more,” the company said. It also set out that traders must undergo a customer ID check and must have two-factor authentication set up to be able use the service.
Margin trading is currently available in bitcoin (BTC), Ethereum (ETH), XRP, Binance coin (BNB), Tron (TRX) and Tether (USDT) pairs but can be funded with any cryptocoin supported by Binance. The fee is 0.02% except for BNB, for which 0.01% applies.
As for the new version of the platform, the company said that, besides a newly optimized interface, it has improved order matching. This enables users to move funds from their margin wallet to their primary wallet without any transaction fees.
Changpeng Zhao, CEO of Binance, reacted to the addition of margin trading as: “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. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”