Binance adds support for Compound (COMP) cross margin trading

Written by: Ali Raza
November 16, 2020
  • The leading exchange, Binance, recently announced adding a new asset to Cross Margin trading.
  • The new asset is Compound (COMP), one of the more popular DeFi tokens.
  • The token is currently available for Cross Margin trading with two pairs, against USDT and BTC.

The leading crypto exchange, Binance, published a new announcement earlier today, revealing that it has enabled Cross Margin trading for another new asset. The asset in question is a DeFi token Compound (COMP), which currently has two Cross Margin pairs.

Binance announces enabling COMP for Cross Margin Trading

Cryptocurrency exchange Binance has been among the first to start recognizing the potential of DeFi when it started to blow up, earlier this year. The exchange made several attempts to enter the DeFi sector and become an early mover, expecting the surging prices and DeFi’s constantly-growing popularity.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

It even launched Binance Smart Chain in order to attract developers and users alike, as well as anyone else interested in decentralized finance.

Now, the exchange continues to make DeFi more available by adding Cross Margin assets, with the newest one being Compound (COMP).

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

Details about Cross Margin trading of COMP

According to Binance’s announcement, Compound Cross Margin trading was just enabled earlier today, with two Cross Margin pairs at this time — COMP/USDT and COMP/BTC.

Cross Margin trading is popular due to several reasons, such as the margin bein shared among the user margin account. Each user is allowed only one Cross Margin account, with all trading pairs available within it. In addition, assets in a cross margin account are shared by all positions.

Binance also explained in one of its guides that Margin Level is calculated ‘according to total asset value and debt in the cross margin account.’

The system is responsible for checking the margin level of the account, and notify the user about the next step, which can be closing positions, or supplying additional margin. In case the liquidation happens, all positions are liquidated.