Bithumb Global Rolls Out Margin Trading With 5X Leverage For Bitcoin And Ether Trading Pairs With Te

Bithumb Global, the international platform of South Korea’s top crypto exchange, has rolled out margin trading with 5x leverage for Bitcoin (BTC) and Ether (ETH) trading pairs with Tether (USDT).


#Bithumb #Global, the international #platform of #South #Korea’s #top #crypto #exchange, has rolled out margin #trading with 5x leverage for #Bitcoin (#BTC) and #Ether (#ETH),https://t.co/8vS84AkwLX#Rakamoto #FridayThoughts #Blockchain #Crypto #Bitcoin #Digital #Money #Coins — Blockchain News (@Rakamoto) April 3, 2020

On April 2, it has been reported in an announcement that the exchange revealed the service would be available on its website and app. It will be restricted for traders living in jurisdictions where margin trading is prohibited or capped as, for example, with Japan.  

However, margin trading enables traders to use borrowed funds in order to increase their potential profits, yet it is a high-risk strategy, as it can equally compound losses where unsuccessful.

Many platforms and regulators therefore advise, or intervene, against retail traders engaging in leveraged trading, often restricting the option to accredited or institutional investors.

Briefly hinting at this, Bithumb Global urges traders to keep their strategies “appropriate” to their financial situation, in light of the “significant risks” they are courting.

Likewise, in late March, Binance announced that it was delisting FTX leveraged token pairs, just weeks after launching the products.

In this case, the exchange reported that retail traders did not appear to understand the tokens and appeared to be holding rather than trading them, counter to their specific design.

Binance, like OKEx and others, offers high leverage on derivatives such as futures, where complexity and liquidation risks need to be carefully navigated.

Thus, in January, the 12th-largest crypto exchange Bitstamp partnered with crypto-friendly Silvergate Bank to trial leveraged Bitcoin trading, restricting the pilot to select institutional clients. 

Source: medium.com | binance.zendesk.com | cointelegraph.com | Image: aithority.com

#bithumbglobal #ether #CryptoNewsPoint #DigitalNotice #Bitcoin #Tether #bithumb

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