Binance Announces It Will List Three New Margin Pairs!

world’s largest cryptocurrency exchange Binance recently announced that it has added three new margin pairs to its platform.

Newly added couples BTC/USDC, ETH/USDC And USDC/USDT and now it is possible to trade on both Cross Margin and Isolated Margin.

As it is known, after the bankruptcy of Silicon Valley Bank in the USA, the reserve funds of USDC distributor Circle were stuck in this bank and there was a loss of 1 dollar fixed called depeg in the USDC price.

Cross Margin and Isolated Margin on Binance: What’s the Difference?

Margin trading on Binance can be done in two modes: Cross Margin and Isolated Margin. While both allow traders to trade with leverage, there are important differences between the two modes.

Cross Margin means that the total balance in a user’s account is used as collateral for all open positions. In other words, all available funds in the account are used to meet the margin requirements of all positions. This means that if a trader’s position begins to depreciate and their account balance falls below the maintenance margin, Binance can liquidate the position to avoid losses.

On the other hand, Isolated Margin allows investors to allocate a certain amount of funds for each position, and this fund only acts as collateral for that position. This means that if a trader’s position begins to depreciate and their account balance falls below the maintenance margin, only that position will be liquidated, while other positions will not be affected.

*Not investment advice.