Today, Binance has executed its first margin trading liquidation as it continues to test its new feature.
Its CEO Changpeng Zhao (CZ) has posted on social media June 24 that the test pilot executed its first liquidation on Bitcoin $10857 with a 3 -0.07% short position.
Bitcoin is still fluctuating as of Monday, finally breaking the $10,000 mark, trading on some exchanges at around $11,300 before correcting downwards to $10,900.
When it comes to margin trading, high fluctuations can bring huge loses, and that is probably why Binance avoided integrating this risky trading tool until now.
Zhao also reminded users to be cautious when it comes to margin trading and not make foolish and costly mistakes.
“Don’t bet against bitcoin, and don’t bet [against] b…” posted the CEO on Twitter, suggesting to inexperienced traders to go for a long position on Bitcoin.
We had our first Margin liquidation today. Guess what, it was on a #BTC short.
Don't bet against bitcoin, and don't bet again b…
— CZ Binance (@cz_binance) June 24, 2019
The last b from his sentence might be a reference to the exchange’s native currency, Binance Coin (BNB), and to also support the currency by going long.
The margin trading pilot currently has engaged thousands of Binance users, with the exchange deciding to give access to holders of its in-house token, Binance Coin (BNB) 00, earlier this month.
In other recent developments, Binance has added support for its native Binance Chain stablecoin, USDSB, developed by StableUSD.
On a post made on June 17 in the exchange’s blog, it read that:
“The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t native on Binance Chain
With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX.”
Featured Image: CoinDesk