The world’s largest cryptocurrency trading platform, Binance, appears to be inching closer to allowing margin trading on selected cryptocurrency pairs. CZ, or Changpeng Zhao, the exchange’s CEO, noted the mention without confirming or denying it.
According to the findings, Binance, the leading crypto exchange, is inching closer to allowing margin trading on selected cryptocurrency pairs.
This is coming from a flag in the official Binance public rest API that has been turned on and it’s no other but the isMarginTradingAllowed flag. Currently, it is reported to be set to “true” instead of to “false” as it has previously been. The following 9 cryptocurrency pairs are probably the first trading pairs that will be available:
The official Binance public rest API documentation can be found here, while the response with the mentioned changes can be found here.
If true, Binance will be joining other cryptocurrency exchange such as BitMEX exchange in providing traders with an option to margin trade. Being the world’s leading and definitely the most popular cryptocurrency exchange, it’s perhaps safe to say that this will add even further interest to the platform.
Being the active member of the cryptocurrency community that he is, Changpeng Zhao, the CEO of the exchange, was fairly quick to notice that people had quickly picked up on the change in the isMarginTradingAllowed flag.
Crowd intelligence is amazing.http://t.co/CsnqdcWp9F
— CZ Binance (@cz_binance) May 2, 2019
It’s worth noting that while the executive didn’t provide any confirmations, he also didn’t deny anything.
Bitcoin margin trading allows users to leverage a regular trading position without having to hold the required BTC in your balance. In other words, you can trade with more BTC than you have by borrowing the rest from the cryptocurrency exchange itself. Of course, it also comes with increased risks of losses, so it should be exercised with serious caution.