The long-awaited feature on the world’s leading cryptocurrency exchange has finally gone live. Users can now take advantage of margin trading capabilities on Binance for selected cryptocurrency pairs. But there’s also a catch.
Margin Trading Live on Binance
Perhaps one of the most sought after and long-awaited feature on the world’s leading cryptocurrency exchange Binance appears to be finally here. The platform has added margin trading capabilities for selected cryptocurrency pairs.
As Cryptopotato reported earlier in May, a flag in the official Binance public rest API had been turned on. The flag was the isMarginTradingAllowed, and it was set to “true” instead of to “false.” Back then, the following nine cryptocurrency pairs were reported to be the most probable ones available for margin trading.
Somewhat expectedly, after allowing the margin trading option on its platform, Binance has allowed these exact pairs to be traded. Unlike other margin trading exchanges such as BitMEX which offer very high leverage (up to 100x), the maximum leverage on Binance is x2.
Users can see the available pairs by clicking on the M button, which is on the top right corner next to the available trading pairs. The “M,” or margin pairs, is currently available only in the beta version of the popular exchange.
Once this is done, they need to go to where they create their buy or sell orders and they will see an additional tab called “Margin.”
So What’s The Catch?
At this stage, margin trading is available only on invitation. There doesn’t seem to be official information on whether and when it will be available for the general public.
Moreover, it also appears that users from the USA are also entirely restricted from trading on margin on Binance.
Binance is generally open to the US markets except for a few states including New York, Connecticut, Hawaii, Georgia, New Mexico, and Washington. At this point, we have yet to see whether margin trading will be opened to the US market. However, it’s clear that this will attract additional interest in the exchange.
It’s also important to note, however, that margin trading comes with an increased level of risk, so it has to be exercised very carefully and only by experienced traders.
The post It’s Official: Binance Adds Margin Trading (Beta), But There’s a Catch appeared first on CryptoPotato.