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Binance extends Portfolio Margin to users with 100,000 USDT minimum - sources

Published 04/03/2024, 06:51 AM
Updated 04/03/2024, 06:22 AM
© Reuters

Binance, the world's largest cryptocurrency exchange by trading volume, is broadening the accessibility of its Portfolio Margin product by extending it to non-VIP users holding a minimum balance of 100,000 USDT in their Cross Margin and Futures accounts, has learned.

This expansion is supposed to improve capital efficiency for a wider range of Binance traders, particularly those employing sophisticated portfolio strategies without the requisite VIP status.

The introduction of the new Portfolio Margin wallet marks a major milestone in how Binance users can manage their assets. By consolidating the USD-M Futures, COIN-M Futures, and Cross Margin wallets into a single unified wallet, Binance streamlines the process of collateral management to enable smooth portfolio adjustments and optimization. 

With Binance's Portfolio Margin, traders can leverage a variety of assets from the combined futures and margin wallets as collateral. This is applicable for an extensive array of trading pairs, including 548 cross margin pairs, 281 USD-M Futures contracts, and 49 COIN-M Futures contracts, summing up to a total of 878 trading opportunities.

“We are pleased to extend Portfolio Margin to eligible non-VIP users so they too, can make use of a broad range of supported collateral assets on Binance to enhance their trading strategies. The new combined Portfolio Margin Wallet reduces friction, and offers greater ease for asset management,” said Sherrine Tan, Product Marketing Lead at Binance.

Portfolio Margin accounts employ a risk-based margin method that offers an integrated evaluation of a trader's total market exposure, considering the unrealized Profit and Loss (PnL) across Futures and Cross Margin trading activities. 

This approach provides traders with greater flexibility in managing their portfolios, improved capital efficiency, more arbitrage opportunities, and a useful tool for controlling risk.

Portfolio Margin supports the broadest range of collateral assets in the market, which can be simultaneously used across USD-M Futures, COIN-M Futures, and Cross Margin trading products. This feature maximizes capital efficiency by offering competitive collateral ratios. 

Moreover, the new feature enables the netting of unrealized PnL by balancing different positions across the three trading products. The integration into a single Portfolio Margin wallet simplifies the oversight and management of collateral assets and PnL. 

Finally, dedicated API endpoints for Portfolio Margin trading improves the trading experience across USD-M Futures, COIN-M Futures, and Cross Margin products.

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