Currently, Binance is offering margin trading on its custodial exchange as they’re revamping the user experience and interface on the platform. Unfortunately, the feature won’t be available to all Binance customers, notably those in the United States.
A Redditor who claimed to have computer programming skills discovered the first clue that Binance was planning to offer margin trading while he was experimenting with Binance’s public application interface (API).
On March 20, he posted his findings on Reddit with a tittle, “Research: Margin trading features found on Binance API”.
Reddit user lifofifo on May 1, discover while he was examining the Binance API that the binary switch “isMarginTradingAllowed” has been revealed for a number of trading pairs such as XRP-USDT: BTC-USDT; XRP-BTC; BNB-BTC; TRX-USDT etc. this was a strong sign margin trading was soon coming to Binance.
On May 8, the CEO of Binance, Changpeng Zhao, said
“I think most people have already seen the margin flags edit in our API. Yes, we are working on a margin [trading] system that’s rolling out very, very soon. We are going to first roll out [this system] to a few of our key clients, the large traders so that they can help us test. “
Towards the last days of May, the vice president of business at Coinbase, Emilie Choi, told The Block that they are considering margin trading which will be “a next big step…especially on the active trader side.”
However, Choi noted that the regulatory uncertainty in the US will need to first be discussed in length before launch. On whether they are looking to compete with Binance, the VP of business noted that Coinbase is “playing one game” while Binance is “playing another. ”
Do you think margin trading will be beneficial in the cryptocurrency space?
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