HitBTC, a popular cryptocurrency exchange in the industry, has added what it calls margin trading for up to x10 leverage for those trading on its main platform, according to a press release.
“This new feature allows users to open positions of a larger size with a smaller initial deposit by using additional funds that are provided by a margin lender and ensured by a certain percentage of the full order value,” the release notes.
Margin trading will be available for seven cryptocurrency pairs: BTC/USDT, ETH/USDT, BCH/USDT, XRP/USDT, ETH/BTC, BCH/BTC, XRP/BTC.
Essentially, margin trading allows users to multiply their capital gains while trading. “Now, the exchange has made it possible to trade at a leverage of up to 10:1. This ratio of borrowed funds to deposited collateral empowers traders to increase both their position size and, in turn, their potential profit tenfold. For instance, at a x10 leverage ratio, users only have to commit 20% capital, or $200, to open a $2000 position,” the release notes.
For those looking to test out margin trading, HitBTC has released what it calls a demo platform that will allow users to try margin trading in a safe environment with a virtual balance instead of with real money.
Remember, all trading carries risk. Past performance is no guarantee of future results.