Renowned cryptocurrency exchange Binance has announced the addition of altcoins named BLUR, VIC, KMD, LSK, RARE, and VOXEL to its leveraged trading pairs. These altcoins have been included in both cross margin and isolated margin trading pairs with USDT.
According to the announcement by Binance, BLUR/USDT, KMD/USDT, LSK/USDT, RARE/USDT, VIC/USDT, and VOXEL/USDT trading pairs have been added for cross margin. For isolated margin, BLUR/USDT and VIC/USDT trading pairs have been included.
In Binance, cross margin and isolated margin represent two different margin modes that users can choose from when trading with leverage. In isolated margin mode, users can allocate a specific margin for each trade. This means that a separate margin is set for each trade, and this margin is used only for that transaction. Other transactions are not associated with this separate margin, thereby preventing the loss from one transaction from affecting others and allowing you to isolate the risk.
In cross margin mode, the entire account balance is pooled and used for all open trades. This means that your total balance is associated with the margin of all your open positions and that if a transaction incurs a loss, it can affect the total balance. However, this mode offers more flexibility and allows for the optimization of the overall margin level.
The choice of which margin mode to use depends on the trading style, risk tolerance, and strategy of the user. Isolated margin may be suitable for those who want to limit risk and allocate a specific margin for each trade. On the other hand, cross margin may be more suitable for those seeking more flexibility and wanting to optimize the overall portfolio margin. However, careful research should be done before using either margin mode, and a solid risk management strategy should be established.