Cryptocurrency exchange Binance announced that they were launching margin trading on their platform. A press release from the company stated that as part of Binance’s effort to help push the industry forward and freedom of money, the company was expanding its trading possibilities, similarly to existing leveraged trading features on traditional markets.
Founder of Binance, Changpeng Zhao (CZ) said, “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. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
Last week, CZ had announced the exchange’s plan to launch margin trading. While he was delivering a speech at the 2nd Annual Asia Blockchain Summit 2019, CZ said that the exchange would soon offer futures trading for cryptocurrencies on the platform.
News portal CoinTelegraph noted that while CZ did not specify a date for launch for the new “Binance Futures” trading platform, a simulation test version is expected within a few weeks. The CEO also revealed that the platform would eventually support both long and short trading contracts for different cryptocurrencies.
Following Binance, cryptocurrency exchange Coinbase also announced that it was planning to launch margin trading.
Discussing the development, Emilie Choi, VP of Business, Data & International at Coinbase had said, “Margin lend borrow is definitely going to be a next big step for us, especially on the active trader side.” The portal noted that while greater risk is involved with trading on borrowed money, and while margin trading regulations in the US protect the market from a bad fallout, it is a bigger challenge when margin trading takes place in unregulated markets.
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