Margin Trading news

Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.

World latest news

Is Binance 2.0 and margin trading really accessible for ‘everyone?’

Binance, one of the world’s largest exchanges, announced recently that Binance’s upgraded version, Binance 2.0, was available to everyone. CZ tweeted, “While #bitcoin is on a tear on price, @Binance have rolled out Binance 2.0, with margin access to everyone. In bear and bull markets, we #BUIDL!” The margin trading feature which was previously available […] The post Is Binance 2.0 and margin trading really accessible for ‘everyone?’ appeared first on AMBCrypto.
AMBCrypto

Bitfinex Improves its Margin Trading Instrument to the Tune of 100x

Coinspeaker Bitfinex Improves its Margin Trading Instrument to the Tune of 100xBitfinex, the cryptocurrency exchange with multiple platform services as Margin Trading, Margin Lending and OTC (Over-The-Counter) which allows for an off-exchange trading mechanism, is set to extend its margin trading capacity to up to 100x leverage.The multi-national exchange originally registered in the British Virgin Islands but having its headquarters in Hong Kong, has in recent times been levied with fraud allegations ranging to the tune of a surmounted loss of $850 million custom funds. And in a bid to recuperate, the crypto platform has decided to boost user’s trust, by incorporating an increased marginal trading instrument. Although Bitfinex, already offers a marginal trading device that allows for up to 3.3x leverage. With future plans to expand its margin trading features into its derivative trading.In a recent tweet, Paolo Ardonio – the CTO of Bitfinex, cited that this new merchandising tool would permit users exchange on a 1:100 leverage. 👀🦁 pic.twitter.com/kBgPsGyOL3— Paolo Ardoino (@paoloardoino) June 24, 2019Ardonio further explained that the exchange has been accumulating customer’s marginal trading data over time. This granted the Fintech Company ample opportunity to better understand the position sizing requirements necessary to guarantee assured preservation and multiplication of customers’ financial assets.Margin trading in its own light is an asset trading methodology that involves the use of external funds from third-party investors to trade. By means of this trading methodology, investors can leverage their position by garnering access to a larger pool of funds. As a result of the high volatility of the cryptocurrency market, high leverage positions could amount to huge gains and colossal losses as well. In relation to this, Bitmex, being the only crypto exchange that currently allows for 1:100x marginal trading index, has registered a humongous amount of traders’ loss due to an uncalculated use if this leverage system.What stands to be a dilemma is whether Bitfinex could ensure its users from over-leveraging. However, considering the profits involved in the isolated margin — which is the initial liability added to an open position, the Exchange could control how much capital is at risk so that in the event of a liquidation, the available balance on their accounts will not be added to the margin position.Bitfinex Improves its Margin Trading Instrument to the Tune of 100x
Coinspeaker

Bitfinex is adding 100x margin trading to its crypto derivatives platform

Bitfinex, the same exchange embroiled in fraud allegations over the loss of $850 million in customer funds, is adding 100x margin trading. 1:100 leverage on Bitfinex In a recent tweet, the chief technology officer at Bitfinex, Paolo Ardonio, hinted that the platform will soon allow its users to trade 1:100 leverage. 👀🦁 pic.twitter.com/kBgPsGyOL3 — Paolo Ardoino (@paoloardoino) June 24, 2019 Bitfinex will continue to offer up to 3.3x margin trading, but as an optional instrument, it plans to extend its margin trading capacity for its upcoming expansion into derivatives trading. Ardonio explained that over the years the company has collected data from its customers’ margin trading behavior, which allowed him to have a better understanding of the position sizing requirements needed to protect customers’ capital. As a result, the cryptocurrency exchange will only offer the 100x leverage feature to verified users on isolated margin positions, helping traders manage risk and avoid having their positions closed or liquidated. Since the cryptocurrency market is extremely volatile, high leverage positions can lead to astronomical gains and rapid losses. Thus, allowing traders to have isolated margin—which is the initial liability added to an open position—helps them control how much capital is at risk so that in the event of a liquidation, the available balance on their accounts will not be added to the margin position. The liquidation engine At the moment, BitMEX is the only cryptocurrency exchange that offers 100x leverage derivatives trading, and it is notorious for the number of traders who have lost all of their capital through careless use of leverage. Even though many traders have been able to profit from this feature in this exchange, it comes with high risks that could lead to complete capital loss. Larry Cermak, director of research at The Block Crypto, recently pointed out that the BitMEX index can be easily manipulated to liquidate thousands of transactions on the platform. What do you think can be done with people manipulating BitMEX’s index to liquidate millions? Unless BitMEX introduces better measures, this will continue happening and people will continue getting REKT — Larry Cermak (@lawmaster) June 6, 2019 This same process was examined and explained over a year ago on Reddit. It remains to be seen whether Bitfinex will actually protect its customers from overleveraging, but considering the profits to be made it seems unlikely. The post Bitfinex is adding 100x margin trading to its crypto derivatives platform appeared first on CryptoSlate.
Cryptoslate

Bitfinex’s 100x margin trading derivatives product is ‘ready for prime time’

Bitfinex, the exchange at the center of Bitcoin’s bull run, has revealed that its “margin trading derivative product” is ready for launch during prime time, reported The Block. The CTO of Bitfinex, Paolo Ardoino, stated that the product has been in the works for almost a year and that it is expected to go live this […] The post Bitfinex’s 100x margin trading derivatives product is ‘ready for prime time’ appeared first on AMBCrypto.
AMBCrypto

Binance Claims its First Margin Trading Victim

Leading cryptocurrency exchange, Binance, has executed its first liquidation today as the platform continues to test its new margin trading feature. Someone Got #REKT On Binance As CEO Changpeng Zhao (CZ) confirmed on social media June 24, the pilot scheme delivered its first liquidation – likely painful for those involved – on a Bitcoin 00 short. Bitcoin price continues to fluctuate at press time Monday, having reached over $11,300 on some exchanges before correcting downwards below $10,600. Significant price moves can prove highly costly for margin traders, with the world’s leading crypto exchange choosing to steer clear of the sought-after, yet potentially dangerous, tool until now. The fate of margin trading accounts on global exchange giant BitMEX, frequently makes for a point of debate on cryptocurrency social media, with data showing the extent of users’ gains and losses. Zhao used the occasion of the first liquidation to remind followers to behave responsibly with their capital. “Don’t bet against bitcoin, and don’t bet [against] b…” he wrote on Twitter, which serves as both a warning to inexperienced traders who might be considering margin trading, as well as a suggestion to his followers to long Bitcoin. The final part of his comment is most likely referring to his platform’s own native currency, Binance Coin (BNB), as a reminder to support that token too. A BTC-Pegged Stablecoin The pilot currently involves several thousand Binance users, with officials opting to open up participation to holders of its in-house token, Binance Coin (BNB) 00, earlier this month via an early access scheme. BNB has gone from strength to strength in June, delivering a new all-time high of just under $40. This week, Binance confirmed trading support for its native Binance Chain stablecoin, USDSB, issued by StableUSD. Previously, the exchange announced it was issuing BTCB on Binance Chain, a token pegged to Bitcoin. Binance’s recently-launched decentralized exchange, Binance DEX, will also likely facilitate trading. A blog post issued June 17 read, The main benefit of offering crypto-pegged tokens is that, obviously, this makes available to Binance DEX traders the many coins that have their own blockchains and aren’t native on Binance Chain It went on to say, With the increase in the selection of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, This would further increase the utility value of Binance DEX. As Bitcoinist reported, with regulatory questions affecting all cryptocurrency traders, Binance nonetheless has taken the decision to exclude US users from certain aspects of its platform. Ahead of the upcoming G20 summit, cryptocurrency businesses are scheduled to meet with intergovernmental organization the Financial Action Task Force (FATF) in order to clarify recommendations which many say will place impossible demands on them. What do you think about Binance’s margin trading? Let us know in the comments below! Images courtesy of Shutterstock, Twitter @cz_binance.  The post Binance Claims its First Margin Trading Victim appeared first on Bitcoinist.com.
Bitcoinist

How a Crypto Exchange CEO Lost $80m by Margin Trading User Funds

Almost half a year after the collapse of Canadian exchange, QuadrigaCX, shocking details of its operational practices continue to emerge. The case has drawn widespread condemnation, as people struggle to take in the catalog of shady goings-on that characterized the conduct of this exchange. The latest report from independent monitors, Ernest & Young (E&Y), brings to light severe weaknesses in accounting procedures. But, more sensationally, it has emerged that deceased CEO, Gerald Cotten, had lost CD$80 million ($60.5 million) by margin trading customer’s funds. The Mysterious Death of QuadrigaCX CEO Before its collapse, QuadrigaCX was a relatively successful operation, having managed to become Canada’s number one exchange. But, at the tail end of last year, news of trouble emerged as users reported difficulty in withdrawing funds. Rumors of insolvency, or worse, a serious hack, were circulating. Moreso, around the same time, it was reported that 30-year-old co-founder and CEO, Gerald Cotten, had died suddenly from complications to do with Crohn’s disease, while in India. Somewhat inexplicably, Cotten was the only person who could access the purported $190 million of funds. What’s more, as customers and creditors were scrambling for answers, the mystery deepened as it came to light that Crohn’s disease is not usually fatal. The QuadrigaEX situation is high drama. If Gerald Cotten is dead & the exchange's keys are unrecoverable, the only question is if he had other assets that the bankruptcy estate can go after. If he's alive, get ready for an international manhunt led by asset recovery lawyers. — Jake Chervinsky (@jchervinsky) February 7, 2019 E&Y’s Latest Findings The months that followed uncovered serious failings within QuadrigaCX’s internal controls. The latest report from E&Y that was filed yesterday with the Supreme Court of Nova Scotia outlined a company that was: “significantly flawed from a financial reporting and operational control perspective.” The report drilled deeper by described the lack of segregation of duties within the day to day running. Moreover, Cotten had sole control over most aspects of the company’s operations. E&Y also found that QuadrigaCX did not segregate their assets from user’s funds. As such, QuadrigaCX could not provide robust financial reporting. And through a combination of complete operational control and non-segregation of funds, Cotten was able to pilfer funds. According to E&Y: “Significant volumes of Cryptocurrency were transferred off Platform outside Quadriga to competitor exchanges into personal accounts controlled by Mr Cotten. It appears that User Cryptocurrency was traded on these exchanges and in some circumstances used as security for a margin trading account established by Mr Cotten.” And it doesn’t stop there. Cotten also created fake accounts on QuadrigaCX, which he made unsupported deposits into. The purpose was to trade on his own platform. This led to: “inflated revenue figures, artificial trades with users and ultimately the withdrawal of cryptocurrency deposited by users.” To date, E&Y calculate losses totaling CD$214.6 million ($162.2 million), affecting 76,000 users. Additionally, investigations show other exchanges had received 9,450 BTC, 387,738 ETH, and 239,020 LTC from QuadrigaCX, over three years from 2016. Wow. Quadriqa mgmt pilfered client funds to do compulsive margin trading on other venues and got liquidated repeatedly. One exchange received 21,501 BTC of deposits over 3yrs from him. He traded it down to a mere 8 BTC. Is this the largest trading loss in Bitcoin history? https://t.co/H8pkwiAPFs — Su Zhu (@zhusu) June 20, 2019 Regulators Do Not Want A Repeat The scale of negligence is a shock. And while Canada is a relatively small crypto market, that does not detract from the severity of what happened. Following this, Canadian regulators are working on tighter restrictions around cryptocurrency. At present, The Canadian Securities Administrators are in the process of overhauling its securities regulations to cover crypto trading platforms. They will focus on providing a tailored framework to address lack of investor safeguards, conflicts of interest, price transparency, and inadequate security controls. Not only that, but QuadrigaCX has been the spur for increasingly draconian regulations on a global basis. In a bid to stave off similar incidents, finance ministers from around the world are collaborating with Financial Action Task Force (FATF), to implement new measures to prevent crypto-related crimes. How a Crypto Exchange CEO Lost $80m by Margin Trading User Funds was last modified: June 20th, 2019 by Samuel WanThe post How a Crypto Exchange CEO Lost $80m by Margin Trading User Funds appeared first on NewsBTC.
NewsBTC

Need your Feedback! Decentralized margin trading platform[unique design]

Hey guys, ​ I'm building a dcentralized margin trading platform.and would love to get the community's feedback. The working name for the project is Leverest and it is a trustless margin trading platform. Leverest provides non-custodial leverage by matching borrowers and lenders with different risk profiles. What makes Leverest different than other derivatives platforms like dydx or nuo is that all trading is denominated in ETH (lower gas costs and interest rates). ​ Traders take a leveraged long position by borrowing ETH. They pay interest based on the price of ETH in USD when the contract opens. If ETH rises, traders get a multiple on the returns. Lenders have a different experience on Leverest than other platforms. Lenders offer ETH for leverage but earn interest based on the price of ETH and network utilization. If 50% of the ETH offered in Leverest is borrowed, lenders are 50% exposed to ETH price fluctuations. The other 50% acts as a stable coin. ​ Why should I lend? Through Leverest, lenders hedge against a fall in ETH prices by earning interest in USD terms on part of your position. You trade part of the upside of ETH gains for interest and downside protection. ​ Why should I trade on Leverest? For traders, Leverest allows you to open a line of credit to trade more ETH than you have. Traders can get up to 4x leverage with ETH. ​ Click here for more details on the platform: https://docs.google.com/document/d/1VUNYMIebZ7YHEq2ZE__twSktgSp7lBPto82gSWFq0Lw/edit?usp=sharing ​ Would you be interested in being a lender or borrower? What are your experiences using other open finance applications? ​ Also, feel free to checkout our subreddit /r/leverest - we're in the initial stages. Come join in on the discussions!
/r/CryptoMarkets

PrimeXBT Margin Trading Platform Launches Android App

VICTORIA, Seychelles, June 17, 2019 /PRNewswire/ -- PrimeXBT, a multi-asset Bitcoin-based trading platform offering up to 500x leverage, has launched a new mobile app for Android smartphones providing access to all available trading tools and assets while on the go. Mobile App Represents Milestone for Bitcoin-Based Trading Platform The PrimeXBT mobile app is the latest step in the trading platform's continued evolution. This important step demonstrates the culmination of consistent progress and rapid growth following extensive expansion efforts. In addition to offering Bitcoin-based margin trading across a variety of asset types with up to 100x leverage, the lowest commissions, no KYC, advanced order types, charting tools, and much more, PrimeXBT also recently expanded its asset offering to include traditional financial assets such as Forex currencies, Commodities such as Natural Gas and Oil, spot contracts for Gold and Silver, and Stock Indices. Through a B2B partnership, PrimeXBT will debut the Covesting module, providing an innovative way for traders of any experience level to profit from one ...Full story available on Benzinga.com
Benzinga
More news sources

Trending

Hot news

Hot world news

Coin Source Will Bring Dai to Its ATM Users

Stable currencies are all the rage as of late, primarily because they aren’t prone to the price swings and volatility one often witnesses with mainstream digital assets such as Ethereum and Litecoin. If you want to invest in crypto but are nervous about the prospects, stable currencies could be the answer. Now, they’re earning an even larger boost through companies like Coin Source, a Texas-based operator of cryptocurrency ATMs. Coin Source Brings Stability to Crypto The venture recently announced that it would be adding the stable asset Dai to its many ATMs located throughout the southern United States this summer. The addition of the coin is “in preparation” for what the company calls a widespread remittance program, in which workers will be able to send money home to their families in the form of Dai or other cryptocurrencies that they can trade or sell. Travis Gough, chief product officer at Coin Source, comments: In remittances, people want to save as much value and they don’t want to be subjected to the high volatility that you’re seeing in bitcoin and other cryptocurrencies that can be very speculative. Price swings are a persistent worry in the crypto space, and likely never to leave enthusiasts’ minds fully. At the same time, it’s easy to suggest that currencies like bitcoin are suddenly easier to accept given these swings are now traveling north. Since April of this year, bitcoin has been enjoying a serious bull run, having jumped by nearly 200 percent in just the last three months alone. After a lengthy period of traveling through the doldrums at the mid-$3,000 range, the currency began its new string of price spikes last April with a sudden (and unexpected) jump to $5,000. The good news this time around is that bitcoin’s sudden behavior is likely being sparked more by market trends, which will make this bull run more stable than the one that occurred in 2017, reportedly the subject of manipulation by users of the stable currency tether. Along with bitcoin, currencies like Litecoin have also surged in price, heightening the crypto space’s present levels of legitimacy. A New and Improved Way to Send Money The Coin Source remittance service – which will at first be available to customers only in the United States – will allow ATMs to transfer Dai and other digital assets between wallets. Once a customer receives funds, they can forward them to the wallets of selected parties granted those parties have satisfied all of Coin Source’s know-your-customer (KYC) requirements. Receiving individuals can then confirm the funds and trade or sell them accordingly. All transactions occurring by way of Coin Source are recorded onto the Ethereum blockchain. At press time, the company operates more than 230 ATMs in nearly 30 states and in Washington D.C. The post Coin Source Will Bring Dai to Its ATM Users appeared first on Live Bitcoin News.
Live Bitcoin News

Amun AG Launches New Exchange-Traded Product With Data Provided By Bitwise Crypto Index

The fintech firm based in Switzerland, Amun AG, released its new plans to launch an exchange-traded product (ETP) using Bitwise 10 Select Large Cap Crypto Index as a benchmark. The Swiss SIX Exchange has already allowed several other ETPs to operate in the country. Amun AG Works On New ETP Bitwise Index Services has just […]
Bitcoin Exchange Guide

Chainlink (LINK) is launching on Coinbase Pro

Transfer LINK immediately into your Coinbase Pro account ahead of trading. Support for LINK will be available in all Coinbase’s supported jurisdictions, with the exception of New York State. Additional regions may be added at a later date.After 10am PT on June 26, 2019, we will begin accepting inbound transfers of LINK to Coinbase Pro. We will accept deposits for at least 12 hours prior to enabling full trading.Once sufficient supply of LINK is established on the platform, trading on the LINK/USD, and LINK/ETH order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met. Support for LINK will be immediately available in all Coinbase’s supported jurisdictions, with the exception of New York State. Additional jurisdictions may be added at a later date.Chainlink (LINK) is an Ethereum token that powers the Chainlink decentralized oracle network. This network allows smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems.Please note that LINK is not yet available on Coinbase.com or via our consumer mobile apps. We will make a separate announcement if and when this functionality is added.The stages of this launchThere will be four stages to the launch as outlined below. We will follow each of these stages independently for each new order book. If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules.We will send tweets from our Coinbase Pro Twitter account as each order book moves through the following phases:Transfer-only. Starting at 10am PT on June 26, customers will be able to transfer LINK into their Coinbase Pro account. Customers will not yet be able to place orders and no orders will be filled on these order books. Order books will be in transfer-only mode for at least 12 hours.Post-only. In the second stage, customers can post limit orders but there will be no matches (completed orders). Order books will be in post-only mode for a minimum of one minute.Limit-only. In the third stage, limit orders will start matching but customers are unable to submit market orders. Order books will be in limit-only mode for a minimum of ten minutes.Full trading. In the final stage, full trading services will be available, including limit, market, and stop orders.One of the most common requests we receive from customers is to be able to trade more assets on our platform. Per the terms of our listing process, we anticipate supporting more assets that meet our standards over time.You can sign up for a Coinbase Pro account here to start trading. For more information on trading LINK on Coinbase Pro, visit our support page.Chainlink (LINK) is launching on Coinbase Pro was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
The Coinbase Blog
By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.