- BNB gains over 15% in recent 24 hours.
- Binance might introduce marginal trading for retail users.
Binance coin has been growing strongly recently amid speculations that the cryptocurrency exchange Binance might launch marginal trading. While the initiative is still in the early stages of development, Binance team is looking into a scenario where retail traders will have to maintain a stake in Binance Coin (BNB) to get access to leverage, The Block reports.
As a result, BNB gained nearly 16% on a day-on-day basis to trade at $17.39 at the time of writing. The coin has a good upside potential; however, the momentum may fade away if the market does not receive the confirmation. Many industry experts are concerned that offering marginal trading for retail customers entails high regulatory risks. overseeing authorities in many countries might be tempted to ban it especially if users lose money and flood them with complains.
Meanwhile, The Block notes that Binance has been involved in regulatory arbitrage. The company moves from one jurisdiction to another to bypass various barriers.
Also, it is worth mentioning that leveraged trading is a popular instrument that allows investors to with borrowed money. Essentially, it increases the traders purchasing power and at the same time elevates the risks for them in case the market moves in the wrong direction.
In Japan, the self-regulatory body for cryptocurrency exchanges wants to limit the leverage x4.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's XRP could face decline as percentage of supply in profit reaches very high levels
Ripple's XRP is down 6% on Tuesday following record profit-taking among investors as its percentage of total supply in profit reached very high levels in the past week. This follows Ripple Labs donating another $25 million to the pro-crypto Fairshake super PAC.
Litecoin Price Forecast: Whales invest $950M in 73-day buying spree amid LTC ETF approval rumours
Litecoin price hit $87.90 on Tuesday, down 17% from the recent high of $106 recorded on November 23. Despite the steep correction phase, on-chain data shows crypto whales have entered a 73-day buying spree.
Crypto Today: SEI, Fantom and SUI emerge as top gainers, while Morocco moves to legalize crypto
On Tuesday, BTC price struggled at the $93,000 support, while Ethereum fell 7% from $3,546 to $3,300. As BTC and ETH led the crypto market losses, mid-cap altcoins received considerable demand.
Bitcoin needs a further correction for sustained growth
After weeks of rapid growth, Bitcoin (BTC-USD) entered the maximum turbulence zone falling below $94,000. BTC is currently trading at $93,764 and continues to trend downward, having exited the ascending channel.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.