Binance Confirms That Margin Trading Is On The Horizon

The world’s second largest cryptocurrency exchange by trading volume, Binance has confirmed that it will be launching a margin trading service after it accidentally posted tweets with images which revealed that the service was in development.

The images and revelation were first noticed by crypto enthusiasts on Twitter, early on Friday morning, as Binance posted several screenshots of its platform in light and dark modes, asking users which mode the preferred.

Withing the screenshots there was a dedicated tab titled “Margin”. The tab also contained a message stating that margin trading comes with a “higher potential profit” but also comes with “greater risks”.

In a nutshell, margin trading is when a user borrows funds from a broker or exchange in order to trade assets.

Reported by TechCrunch on early Friday, Binance appears to have already launched the service in a beta phase to “selected users”. Furthermore, a representative from Binance also confirmed to the news outlet that margin trading would be available to all on Binance.com “soon.”

Other cryptocurrency exchanges such as Kraken, Coinbase’s GDAX, OKCoin and Huobi all currently offer margin trading services.

Binance has been adding several new features and services as part of its long time plans for expansion. Most recently, the exchange launched its Binance DEX, a decentralized exchange, launched a fiat-to-crypto exchange in Singapore and also revealed a new platform in Australia which enables customers with the ability to purchase bitcoin with cash from various newsagents around the nation.

Furthermore, Binance has increased its efforts to towards upping its regulatory compliance efforts, after doing work with many security and analytics startups including Chainalysis,  Elliptic and IdentityMind.

Lastly, the exchange seems to have fully recovered after the loss of $40 million in bitcoin during a hack earlier this month. Courtesy of the firm’s “Secure Asset Fund for Users”, no customers have suffered any loss as per the breach, according to Binance.

In light of the hack, the exchange has made several upgrades to security and resumed full services a mere week after the loss of funds