Binance, the world’s largest cryptocurrency exchange, has expanded its margin offerings. The exchange announced the addition of new trading pairs, including Wrapped Ethereum (WETH), to both Cross Margin and Isolated Margin as collateral assets.
New Trading Pairs Added to Cross Margin and Isolated Margin on Binance
Binance, the giant cryptocurrency exchange, announced the addition of new trading pairs to both Cross Margin and Isolated Margin, including WBETH. The exchange stated that the following trading pairs have been added to Cross Margin: BNB/FDUSD, SOL/FDUSD, XRP/FDUSD, and WBETH/USDT.
Furthermore, Binance noted that the following trading pairs have been added to Isolated Margin: BNB/FDUSD, SOL/FDUSD, XRP/FDUSD, WBETH/USDT, and WBETH/ETH. With these additions, Binance has introduced a total of 9 new trading pairs to Cross Margin and Isolated Margin.
What is Cross Margin and Isolated Margin?
Cross margin and isolated margin refer to two different margin management types used in cryptocurrency and other financial markets. Cross Margin, also known as “Cross Margin,” is a margin management type where users maintain open positions using all the assets in their margin account. This means that the entire account balance is at risk.
When users open a position using their entire margin account, they may need to add more margin to maintain the position if the margin level starts to decrease. This provides additional protection against potential losses due to price movements but also puts the entire account balance at risk.
Isolated Margin, on the other hand, is a margin management type where users limit each open position to a specific margin level. This means that each position is isolated, and the loss of one position does not affect other positions. By using isolated margin, users can allocate a separate margin amount for each position. This way, if one position incurs losses, the other positions remain protected. However, this approach may require more margin as each position needs to have a separate margin allocation.
The choice between cross margin and isolated margin depends on risk tolerance, trading strategy, and market conditions. While cross margin may be suitable for those who prefer to take more risk and use less margin, isolated margin can be an option for those who want to manage risk better but require more margin. It is essential to understand both margin management types and evaluate the risks before using them, as leveraged trading carries high risks and the possibility of losing the entire capital.
