Binance Adds Margin Trading Support for Tezos Trading Pairs

Posted on Nov 26, 2019

Binance have confirmed the addition of margin trading support for XBT (Tezos) trading pairs, including XTZ/BTC and XTZ/USDT. This follows after a list of additions for margin trading from Binance, with pairs including BNB/ETH, XRP/ETH, IOTA/USDT and IOTA/BTC. Tezos has recently partnered with a Tribe, which is backed by the government in Singapore, in order to launch a training development program for the Tezos blockchain.

Margin trading provides traders the opportunity to trade at a leverage with funds provided by a third party. Traders can access much higher sums of capital this way with a rather small investment, but the possibility of greater profits comes at greater risk, especially for those who do not have specialised knowledge with spot trading tools. Binance are offering traders a 5x margin, allowing them to use a $2000 deposit to leverage up to $10,000. This could increase their profit by $800 without margin, if they gained 10% in value. The rewards are enticing, however a wrong call from the trader on price movement and the loss could be substantial.

Margin trading is mostly favoured in lower volatility markets, and was experiencing gains at the end of last month when other major cryptocurrencies were falling. We may witness a sudden rise in trade volumes given the endurance and Binance’s latest extension to XTZ margin trading. Bitfinex also decided to provide support on their platform for Tezos margin trading earlier on in the year.