Binance will delist GBP, EUR, and AUD margin trading pairs and all of the users’ margin balance could be liquidated in the event of extreme price movements as the exchange stated so let’s read more in our latest Binance news today.
The global crypto exchange Binance continues restricting support for trading services amid the ongoing regulatory crackdown. According to the announcement, Binance will delist GBP, EUR, and AUD margin trading pairs. According to the announcement, Binance will suspend the mentioned fiat trading pairs, and then it will switch to automatic settlement and cancel all related pending orders. The isolated margin trading pairs will be deleted by August 12. the latest trading restriction came in line with the aggressive efforts from the exchange to curb trading risks alongside the decision to limit leverage trading, reducing maximum leverage positions from 125x to 20x on Binance Futures:
“Margin trading carries a substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movement.”
— Binance (@binance) July 26, 2021
Crypto margin trading is a method of trading crypto via borrowing funds and allowing traders to access even more capital to leverage the positions. Similar to Binance Futures, the margin trading service was launched in 2019. the exchange lets users open positions with their capital and the number of assets they want to buy by lending them funds requiring to open positions based on the maximum applicably leverage. The exchange deducts the repay amount and other charges while closing the positions but Binance didn’t respond to comments right away.
The news came amid binance facing increased scrutiny from the global regulators and financial institutions recently. The exchange got a few warnings from regulators in the UK, the US, Italy, and other countries. A number of British financial institutions like Barclays and NatWest started blocking payments to Binance a year ago. Crypto margin trading is a method of trading crypto thorugh borrowing funds and allowing the traders to access bigger capital to leverage the positions and similar to Binance futures, the exchange launched its margin trading service in 2019. The exchange lets users open a position with their capital and the number of assets they want to purchase by lending funds to open a position based on the maximum applicably leverage but it also deducts the repay amount and other charges while closing a position.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]