What’s Binance Margin Trading Like? – Criptonomics
First, to activate Margin you need to be verified (KYC). That’s because Binance cannot allow users from the US and some other jurisdictions to trade on margin.
Once you do that, you can activate your Margin (sub)account, which appears when you click the Margin tab (next to the Exchange, which is your main spot account):
Then you need to fund the Margin account, sending funds from your Exchange account to the Margin account.
Click Transfer on the row of the asset you want to fund with:
Then, to actually leverage your trading, you need to Borrow capital to play your pair of choice. Interest is charged hourly (dynamically, I suppose). To give you an idea at time of writing annualized rates were around 8.1% for USDT 8.1% and 7.2% for BTC 7.2%.
You need to close your loan later, once you’re done trading, to stop the interest charges.
If you have a basic idea of how Bitmex, Deribit or other proper Margin Trading services work (heck, even OKEX!) then you see that this was more a CZ marketing maneuver than a real attempt at competing with the established services.
It’s way too clunky and unpractical to be used regularly/professionally, in my opinion, unless you have a custom API-based solution to take care of all the clunkyness. Let’s hope Binance they improve the user experience going forward 🙂
If you have comments/suggestions please chime in below.
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Your friends at Criptonomics