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Margin trading is coming to Binance and it's coming soon. On Friday, the exchange hinted at the introduction of margin trading in a tweet.
Binance tweeted two screenshots of an updated exchange interface, one in dark mode and one in light mode. 'Dark mode or Light mode?', the exchange asked their followers. But those who paid attention noticed what interface Binance actually was sharing.
Dark mode 🌚 or Light mode 🌝? #Binance pic.twitter.com/pGSb1np4yp
— Binance (@binance) May 24, 2019
The 'M' right after the BTC/USDT symbol sign reveals it's the margin trading section of the exchange, and down at the bottom an 'important reminder' is visible for the user. 'Margin Trading confers a higher profit potential than traditional trading, but also greater risks. Please be aware that in the event of extreme market volatility, there is even a risk that your assets may be liquidated.'
Binance CEO Changpeng Zhao tweeted right after the Binance tweet: 'Who's paying attention here?'
Who's paying attention here? https://t.co/vl4suaId8h
— CZ Binance (@cz_binance) May 24, 2019
The price of Binance Coin reacted immediately, jumping 8% to a new all-time high of $33.72.
BNB/USD Chart provided by Tradingview
CZ hinted right after the Binance hack, in which 7000 BTC was stolen, that margin trading was in its final testing phase. Although it's not yet clear when margin trading will be introduced to the Binance platform, we can expect it to be added to the exchange very soon.
Margin trading allows you to enter into a position that is larger than your holdings. Traders can use borrowed funds to trade. Right now, Bitmex is the most popular margin trading platform in the cryptocurrency space, but with Binance entering this market they have a large competitor coming in.