- Binance Academy in the pipeline ahead of the much-anticipated margin trading.
- Traders will have to demonstrate competence in order to access full margin trading levels.
The strategy officer at Binance Gin Chao said on June 28 during the annual FinTech Junction Conference held in Tel Aviv, shared with Finance Magnates, a news outlet, the plans the exchange has when it comes to margin trading. Binance confirmed not long ago that margin trading will soon be available to its traders. However, the exchange is yet to reveal the numbers that traders are going to be working with.
“You mentioned 5:1,” said Chao to Finance Magnet representative. “I can tell you that we will be able to do that, for sure. But we’re also not going to be doing 100:1 like some other people are doing. So it’s going to be somewhere in between.”
Chao added that Binance has a history of taking its users’ interests consideration first. He explained:
“First and foremost, the reason why I think Binance has been successful is that we take our users’ interests first. You saw how we handled the hack [where Binance refunded all affected clients].
So I think a reputation like that builds trust – both for margin trading clients and with regulators. But traders also have to be responsible, right? We can’t just tell them what to do. They also have to accept that they are taking on risk and understand that.”
As for Binance users, margin trading will be offered in tiers. This means that only experienced traders will have access to full margin trading ratio. However, rookies and beginners will have limits to ensure that they do not risk too much. Chao continued:
“Firstly, we’ll be building up Binance Academy. There already is a lot of educational content there but we’ll be adding more.
The other plan is to have tiers of leverage. So it’s not like right away you can use the max amount. You would need to prove you that you are a fairly competent or experienced trader.”
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