Binance continues to grow the margin ecosystem

Binance announced on Sept. 8 that it has added Band Protocol (BAND), Flamingo Finance (FLM), StormX (STMX) as new loanable asset to cross-margin trading, and added AdEx (ADX), Prom (PROM), Prosper (PROS) announced that it offers new trading pairs for isolated margin transactions.

According to the statement, Binance will give AdEx, PROM and PROS investors the opportunity to trade in USDT parity, for which it currently offers isolated margin trading. Additionally, with the latest update, Binance will start offering cross margin trading in USDT parity to BAND, FLM and STMX investors.

Investors can now use BAND/USDT, FLM/USDT and STMX/USDT trading pairs for cross margin trading, and ADX/USDT, PROM/USDT, PROS/USDT trading pairs for isolated margin trading.

Margin trading is a method of trading assets using funds provided by third parties. Compared to regular trading accounts, Margin accounts allow traders to access larger amounts of capital, allowing them to capitalize on their positions. In traditional markets, borrowed funds are usually provided by an investment broker. However, in cryptocurrency trading, funds are often provided by other traders who earn interest based on market demand for Margin funds. Although less common, some cryptocurrency exchanges also provide Margin funds to their users.