Post
Topic
Board Trading Discussion
Re: Rumors confirmed: Binance margin trading coming soon
by
The Pharmacist
on 31/05/2019, 06:36:21 UTC
Eh...this might sound great for traders, especially since Binance is an extremely popular exchange, but I'm really hoping they don't allow their customers to use too much leverage.  Not only could that ruin a lot of them, but it could also lead to serious price increases of bitcoin and altcoins.  That might sound like a good thing, but it might actually lead to a bubble. 

Maybe I'm paranoid about margin/leverage, but historically it's been responsible for a lot of bad things in the financial world.  Maybe not leverage itself, but people using way too much of it.  It happened in 1929 in the great Wall Street crash and in every bubble we've had since then.  The only way to temper it would be to charge a high interest rate, and I'm not sure what Binance is planning. 

In any case, I won't be trading on margin anytime soon.  Good luck to those taking advantage of it, though.  You can make much higher profits or you could end up losing all your money.