#bstockscis now have another use case that’s easy to miss if you only look at the list of available assets.
Binance has added new bStocks, including ASMLB, NFLXB and SMCIB, to the list of assets that can be used as collateral in Cross Margin and Portfolio Margin for eligible users.
And this is where it gets interesting.
Let’s take a simple example:
You have a position in ASMLB → it can be used as collateral for another margin position.
But there’s another side to it. ⚠️
If the underlying asset’s price falls, the value of the collateral decreases. And when using margin, that can put more pressure on the overall position and increase liquidation risk.
So the mechanism looks something like this:
bStock → collateral → another position → price movement → changing risk level
That’s why I wouldn’t look at the ability to use bStocks as collateral as just “another useful feature.” It’s an additional tool that requires an understanding of margin and risk management.
For me, the main question is: would you use bStocks as collateral to make your capital more efficient, or would you rather keep them separate?
@BinanceCIS
#bStocksCIS
Binance has added new bStocks, including ASMLB, NFLXB and SMCIB, to the list of assets that can be used as collateral in Cross Margin and Portfolio Margin for eligible users.
And this is where it gets interesting.
Let’s take a simple example:
You have a position in ASMLB → it can be used as collateral for another margin position.
But there’s another side to it. ⚠️
If the underlying asset’s price falls, the value of the collateral decreases. And when using margin, that can put more pressure on the overall position and increase liquidation risk.
So the mechanism looks something like this:
bStock → collateral → another position → price movement → changing risk level
That’s why I wouldn’t look at the ability to use bStocks as collateral as just “another useful feature.” It’s an additional tool that requires an understanding of margin and risk management.
For me, the main question is: would you use bStocks as collateral to make your capital more efficient, or would you rather keep them separate?
@BinanceCIS
#bStocksCIS