Bitcoin Forum

For a few weeks now, rumors have been circulating that Binance is preparing to release a margin trading feature. First, revealing code was found in the platform’s API documentation by a random programmer. Next, Binance posted a screenshot image on Twitter to showcase the dark/light interface display, however, in doing so incidentally leaked imagery of a new “margin” tab.

Not long after the detail was noticed, a Binance official confirmed the rumors stating that the exchange will be launching margin trading feature...“soon”.

The addition of margin trading will mean that traders can open both long and short positions, and thus capitalize both rising and falling markets.

It should come at no surprise that Binance wants a piece of the margin trading capital, after the two 100x leveraging exchanges, Bitmex and Primexbt, reached their highest trading volumes ever - Bitmex hit $10 billion in 24hours on the 12th May, and PrimeXBT’s user base grew by a whopping 300% in the same week.

It’s not yet been confirmed how much leverage Binance will be offering...

So far, the major exchanges that offer margin trading and their leverage allowances include:

Poloniex - up to 2.5x
Bitfinex - up to 3.3x
Huobi - up to 5x
Kraken - up to 5x
OkEX - up to 5x
PrimeXBT - up to 100x
BitMEX - up to 100x
 
How high do you think Binance will go?

So binance have a chance puttng margin trading feature on their site,this will be good because some traders from other platform will be back to binance because of this,because this si what binance lack off,but now it is coming so binance volume will be bigger soon.As for the leverage I think binance is planning to pushing theri max leverage to over 100x plus,but the most minimum probably they will implement is just in level with other sites @100x

I'm curious if this will also bring lending to Binance. They don't have lending yet, isn't it? With that they'll cover basically all the features of the other exchanges.

Possible, they would tend to cover up all exchange features in one stop.They would forseen this thing and might add it up soon.They are now
stepping with margin trading add up which is good and I guess for those bitmex users will might consider on using this platform or would
divide eventually the numbers.

Deribit's another platform that offers leveraged swap contracts BTW, and the site offers offers up to 100x leverage on Bitcoin and 50x on Ethereum similarly to how Bitmex does it. Didn't see it included on your list and it's one of the more popular leveraged trading sites.

As for how much leverage Binance might offer, I'm thinking something in the area of 50-100x maximum. I don't ever leverage myself that high because of various factors including the fees involved in very high leveraged trades compared to lower leveraged trades, but they'll probably follow in the steps of BitMEX IMO and provide potentially high leverage to users. I'll definitely try out Binance's leveraged trading when it comes out, though. Bitmex has a few problems and I'm always open to trying out new sites.

This is what Binance should do in order to level with their competition but even if they put margin trading available in their platform only a few skilled trader could take advantage of the feature because margin trading isn't really for everyone, even skilled traders couldn't pull of a profit from it. If you think that regular trading is hard then you should think that margin trading is twice as hard as you will be trading with borrowed funds from the exchange and that comes with an interest.

We might see that over time, but now they are focus on major changes, and we know lending features isn't bigger than margin trading.
They are competing and they want to maintain their position, so having a team like this vision is worth our trust, it's going to be a good year for BNB investors.

Margin trading makes sense only if the platform also offers lending services like eg. Bitfinex does. I didnt read anything that Binance will offer lendings, too. But if they do this would be very interesting in sense of loans and interest rates. Binance is way more trustworthy than eg. Polo or Finex in my opinion.

Yes, this is a strong possibility. I think I read a news regarding a partnership that Binance just inked with a lending platform maybe that can be the one to get involved with its planned margin trading option. Binance really knows what to add and what not to add with its platform...this addition will surely put more fire on its rich belly. I am sure that many traders veterans and otherwise are rejoining with this news. Go Binance...go!

Eh...this might sound great for traders, especially since Binance is an extremely popular exchange, but I'm really hoping they don't allow their customers to use too much leverage.  Not only could that ruin a lot of them, but it could also lead to serious price increases of bitcoin and altcoins.  That might sound like a good thing, but it might actually lead to a bubble. 

Maybe I'm paranoid about margin/leverage, but historically it's been responsible for a lot of bad things in the financial world.  Maybe not leverage itself, but people using way too much of it.  It happened in 1929 in the great Wall Street crash and in every bubble we've had since then.  The only way to temper it would be to charge a high interest rate, and I'm not sure what Binance is planning. 

In any case, I won't be trading on margin anytime soon.  Good luck to those taking advantage of it, though.  You can make much higher profits or you could end up losing all your money.

Certainly, margin trading is a matter of lending. A margin trader who's going to do margin trading need a lender which is another user that can supply what he needs. This will benefit both users as both of them will take profit (only if a margen trader took advantage of the market).

Some margin traders for example in Poloniex doesn't shift to Binance because of the margin trading feature. Through this Binance update, those traders might shift to Binance which will bring them to a greater success. It's good thing that Binance have already consider adding it to their platform.

So another good news for binance. Though the news officially noticed so it will come soon. And Bnb will fly again. I think the price can go 2-3X  from now. And hope Lending also will start one day in Binance Exchange.

At this moment, they only allow 2x leverage IIRC. Not too much eh? You might want to use them to learn about margin trading :D


As long as Binance doesn't get any crackdown from government, they'll likely keep pushing new features or options. Definitely interesting to see the competitions, hopefully, nobody would get rekt by those exchanges.

I think this would just make sure they are getting ahead of everyone else by a big "margin" lol. The reality is people used bitmex just because of the margin trading option and with leverage they were capable of betting on which direction bitcoin would go a lot better and make a lot more money (or lose more). If binance actually goes with this and makes it a reality then they will be capable of getting so much more customers from bitmex as well.

Currently they are at every part of trading, they are doing regular altcoin trading with real binance website and you can buy and sell hundreds of coins, you have Singapore where you can turn bitcoin into fiat and now you have margin trading where you can leverage your earnings into higher chance as well. They are becoming the biggest in the game and will start to acquire other exchanges to get even bigger for sure.

I want to ask if this could have a big effect on altcoins? Like maybe more alts will pumps or dumps?
Since Binance is popular exchange, it could be a huge effect on altcoins.
For me, Binance maybe will go around 2x to 5x.

I think they will still undergo a lot of trial and error procedure.
There are still things to consider but I'm sure that most traders will agree and support margin trading from a certain exchange. Most traders are waiting for this feature and offer.
I could also sense that some exchanges would also do the same thing once it becomes successful.

I have the same question in mind as well. Is margin trading wouldn't lead them into uncertain losses? It will be another challenging path for Binance to take after the hacking incident. It's just good to know that they're trying their best to recover and to stay on top again.

If they'll going to offer this additional service they surely think about it and study much deeper on how to take the benefits, binance having a big names around crypto exchange business, it will be another good challenge for them to facilitate this offer.

Well its sort of a lending still, giving those traders some leverage while they are losing is sort of lending. Lending services won't be necessary just because they allow margin, its just about for trading so you who own big amounts of BTC can provide. Hope to see them add not just the common coins for their margin trading, DASH and EOS will be good.

I think binance will not use 100x of leverage because that will be too risky for traders.
But sometimes, I use 100x of leverage in bitmex only if I am sure about the price movements ;D
But we don't know how much leverage in binance wants to apply and if they want to use 100x of leverage, then we could only follow it, and if we think that is too risky for us to trade, then I think there is a way to reduce the percentage.

I think it is good if that happen because we all know that Binance is no. 1 exchanger that we use right now. If that happen it's more trader will be use Binance because some of them wants to use trading margin. I think if this happen binance will be more popular and many people use it to trade.

Binance has been doing really well, being one of the best exchanges out there, having one of the uprising altcoin, even after they have been hacked they are still big, i am kind of surprised that they did not have margin trading a long time ago, considering that actually there smaller exchanges who did have it, but it is good to seem them implement it even though i am not a big fan of crypto margin trading but it is good to have as an option if at some point i change my mind.

What's wrong with a good old bubble? They've never hurt Bitcoin before. :)

I personally can't wait for them to add margin. I just hope we don't need a verified account to use it.

3x leverage means 3x less collateral required for the same size position. So leverage means I can keep less coins on the exchange. If you know what you're doing, it's the best way to minimize your exposure to counterparty risk.

It's cool. This innovation will increase the volume of trading on the exchange. Particularly Binance exchange popular and successful among traders.

You should keep this in mind that hacking the exchange did made some buzz in the market those days but it did not affect the market at all which means that BNB was not affected by the hacking because the price of BNB increased after the exchange was hacked so yeah, I am very hopeful this challenge would be not a blow for BNB and BNB will be gaining value like it has been since hacking.

Wow, you sure have a guts and confidence to use 100x leverage. But binance will also provide that higher leverage since they will gonna earn for the liquidation of traders. Remember that the higher the leverage the higher chance of being liquidated. Anyhow, this is good news for a margin trader like me. I often used binance and bitmex. If the rumour is true, it is easier for me to do margin trades in binance.