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Will Binance Grow Bigger?

Exchange Plans on Implementing Margin Trading

2019-03-24 13:33:13 | Jonathan Ganor

As reported by TheBlock, the world's 2nd largest crypto exchange by volume, Binance is apparently planning a new feature. The feature is crypto margin trading. This is not new in the world of exchanges, with Kraken and Bitfinex and BitMex offering margin trading to users for quite a while.

Margin trading is considered popular amongst traders and investors but is highly volatile. It allows clients the ability to trade on a margin in order to increase their buying power. This can essentially be seen as trading on borrowed money due to leverage.

The Proof

It was discovered by a Reddit user who made a post on Binance's API and said the following:

"This change has not been reflected on the documentation. Further analysis of the response revealed that all 482 trading pairs have spot trading enabled and margin trading disabled; which makes sense. However, this API update implies that Binance is considering the implementation of margin trading features.

Other competitors such as Bitfinex, OKEx and BitMex already profit from these high-volume markets and is likely Binance CEO Changpeng Zhao wants a piece of the cake."

It is currently unknown when Binance will implement margin trading, if at all. At the moment, there is no official comment from their team.

BNB & the Future of Binance

Rumors claim that users will need to hold BNB (their native token) in order to unlock the margin trading features.

Seeing the massive success of Binance's launchpad for ICOs. One can assume that Binance's margin trading platform will also be of the highest quality. This might cause Binance to grow even larger and push the value of BNB (their native token) further up when launched.

 

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