In today's financial market, the power of retail investors is growing stronger. According to Zhao Changpeng, CEO of Currency Security, up to 60% of market transactions come from this group of individual investors. At the same time, margin trading is gradually becoming a mainstream trend. Let's take a deep look at the reasons, impacts and future development trends behind this phenomenon.

Retail investors play a vital role in the financial market. They directly affect the volatility and trend of the market through their own decisions and operations. In the past, institutional investors dominated the market, but with the popularization of information technology and the popularization of financial knowledge, the number and strength of retail investors have gradually increased, and they have gradually become the mainstay of the market. This transformation has not only changed the market pattern, but also brought new challenges and opportunities to the traditional financial model.

Margin trading, as a leveraged trading method, allows investors to control assets of greater value with smaller funds, thereby increasing investment flexibility and profit potential. With the continuous development of the financial market, margin trading has gradually become popular, and more and more investors choose to adopt this trading method. Compared with traditional spot trading, margin trading can not only magnify returns, but also avoid risks to a certain extent, becoming a popular choice pursued by investors.

The rise of retail investors and the popularity of margin trading have brought great changes to the financial market. Traditional financial institutions and exchanges have also had to adjust their strategies and services to adapt to this new market pattern. For example, some exchanges have launched more convenient and low-threshold trading products to attract more retail investors to join. At the same time, regulatory authorities are also strengthening market supervision, protecting the legitimate rights and interests of investors, and maintaining the stability of market order.

In the future, with the continuous innovation of financial technology and the further opening of the financial market, the status and role of retail investors will be further highlighted. They will play an increasingly important role in the market and promote the financial market to develop in a more fair, transparent and efficient direction. At the same time, margin trading, as an innovative trading method, will continue to be favored by investors and become an important part of the future financial market.

In general, the rise of retail investors and the popularity of margin trading indicate that the financial market is undergoing a revolutionary change. In this process of change, investors need to constantly learn and adapt to the new market environment, seize opportunities, avoid risks, and realize wealth appreciation. At the same time, financial institutions and regulatory authorities also need to continuously innovate and improve systems to provide guarantees for the stability and healthy development of the market. Let us witness the changes in the financial market together and welcome a more prosperous and vibrant future.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to Changpeng Zhao, CEO of Binance, individual investors remain the main driving force behind the market's rise.

According to Bloomberg, Zhao Changpeng said in an interview that while many cryptocurrency supporters believe that the arrival of institutional demand is one of the main reasons for the market's rise in 2019, he believes that retail investors still play a key role in driving up cryptocurrency prices.

"We have not seen an acceleration in institutional investment," said Changpeng Zhao. "What we see is that both institutional and individual investment are getting better. But the increase in the number of institutions entering the industry so far in 2019 has not been that large."

He said that while trading volumes from both institutions and individual investors are growing, individual investors account for about 60% of trading volume. This proportion is roughly the same as last year. Although companies like Facebook and JPMorgan Chase have announced major digital currency plans, these plans have driven more companies and funds to pay more attention to cryptocurrencies.

Changpeng Zhao believes that the growth in trading volume is partly due to more margin trading. On July 11, Binance began to support all traders to borrow up to three times the funds. On the first day, 10,000 traders signed up and borrowed a total of $15 million. Another major exchange, Bitfinex, recently allowed traders to use up to 100 times leverage on certain products. As traders have more funds to speculate, the price of Bitcoin has risen 36% since the beginning of June.

“I would say that by the end of this year, most people will use margin trading to a greater or lesser extent,” Zhao Changpeng said. “To be honest, it’s very safe. There will be more trading volume and possibly higher volatility in the market.”