Main navigation

Crypto Exchange Bitfinex Will Allow You to Trade with 1:100 Leverage 

Advertisement
Tue, 25/06/2019 - 6:00
Crypto Exchange Bitfinex Will Allow You to Trade with 1:100 Leverage 
Cover image via 123rf.com
Read U.TODAY on
Google News
Advertisement

Paolo Ardoino, the CTO of Bitfinex, has just made a vague announcement on Twitter about the exchange offering 1:100 leverage, thus following BitMEX’s lead. As of now, the maximum leverage on Bitfinex is set at 3.3x.  

Related

An optional instrument

According to Ardoino, they there will be no change to their current margin trading offering. Trading at the maximum leverage will an “optional instrument” for Bitfinex traders.

At first, the margin will be isolated in order to mitigate the risks that are linked to an ultra-high leverage trading. Traders are able to prevent additional losses by not applying any additional funds from their balance.  

Advertisement

Ardoino also confirmed that only verified users would be able to use the new feature. 

Despite these safety precautions, there was a knee-jerk reaction to accuse Bitfinex of Bitcoin price manipulation (without any substantial evidence).

Related

BitMEX gets some competition

Cryptocurrency trading is inherently risky because of high volatility, but margin trading takes to a whole new level.  

Article image
image by bitmex.com 

As of now, BitMEX is the only cryptocurrency exchange to allow its users to trade with 1:100 leverage. While this is an acceptable for traditional markets, opening a 100x leveraged position on BitMEX is pure gambling since it will get instantly liquidated after a mere 1 percent move in the wrong direction.

As reported by U.Today, Binance, the leading exchange by trading volume, had its first margin liquidation on June 24 (and it was a short position). 

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD