Binance has confirmed that it plans to launch margin trading for its clients in the near future.
The world’s second largest cryptocurrency exchange appears to have revealed the news by accident.
Just after midnight on Friday morning, the exchange operator posted screenshots of a ‘light mode’ and ‘dark mode’ on its Twitter page, asking its followers to say which they preferred.
Viewers of the two images quickly realized, however, that the two screenshots – which were of the main page on the exchange’s trading platform – also showed a margin trading mode.
As you can see from the image below, along with the exchange tab, there is another page available that is titled “margin.” In fact, the tab is so obviously displayed that one does have to wonder whether or not Binance put it in the image deliberately.
Dark mode 🌚 or Light mode 🌝? #Binance pic.twitter.com/pGSb1np4yp
— Binance (@binance) May 24, 2019
The page states that, even though it can lead to larger profits, margin trading is much riskier than buying cryptocurrencies without leverage.
Keeping up with the exchanges
Binance’s decision to launch margin trading was likely driven by a need to keep up with its competition.
Several other major cryptocurrency exchanges, including Coinbase, Kraken, and OKCoin, have already launched leveraged trading services.
Speaking to TechCrunch, a Binance spokesperson confirmed that the new service would be launched “soon,” adding that it is already in use amongst a select group of traders.
Like most cryptocurrency exchanges, Binance’s operations are quite opaque.
Thus, it’s difficult to say who margin traders would be trading with. In January of this year, the cryptocurrency exchange did launch a dealing desk, but that was aimed at institutions or traders with a large amount of cryptocurrency.
(Photo: facebook)
