Margin Trading Crypto Exchange: Important Things to Know

A crypto leverage trading exchange allows traders to borrow additional funds from the exchange itself to boost their trading position. To put it in other words, the trader, instead of investing the total market value, just puts up a leverage ratio specified by the exchange. This enables them to borrow a sum considerably larger than the margin they have invested.

Margin denotes the minimum sum that the trader has deposited with the exchange so that they can begin the trading process. Leverage refers to the additional funds they have borrowed from the exchange to execute the trade and take home the profits they want.

How 1 ETH becomes 100 ETH

The profits you can make in margin trading are stupendous. For instance, if an exchange offers 100X leverage, traders can deposit a margin of 1 ETH and take home 100 ETH.

Now, let us see how traders will use leveraging.

Assume that 1 Ether (ETH) is priced at $350, and in the coming weeks, you predict its value to increase to say $400.

However, if the trader just has a single ETH, they will lack the capacity to ride the wave.

In an exchange where leverage trading is possible, the trader can deposit their single ETH as a margin and seek the leverage they want. If they avail of the leverage of 100X, they would be able to make 100 times the profits they would be otherwise making.

Key benefits of launching leverage/margin exchange

Integrating margin trading into your crypto exchange would enable you to bring more traders to your platform.

Owing to your decision to develop leverage and margin trading exchange, your traders benefit from improved return ratios. At the same time, the footfalls to your exchange may increase several times as well, boosting your profits exponentially. What is more, a big chunk of these traders will be turning into repeat traders on your exchange.

The pool of margin funds you collect puts plenty of cash in your hands, which you can utilize and shake-up according to your will. If you manage to accumulate a large pool, you may widen your borrow limits or initiate a new service.

Exclusive features on a leverage/margin trading platform

  • Robust matching engine
  • A contract for setting margin limits
  • Conditional trading which allows setting conditions for buying and selling at certain prices
  • Leverage options for CFD
  • Multi-account management which facilitates holding and managing multiple accounts
  • Automated deleveraging to liquidate the trader’s position if their margins fall below a certain threshold
  • Trading bonuses to reward new users for their trades

Summing up

Crypto leverage trading exchange is all about allowing your traders to borrow against the margin they have deposited with the exchange and multiply their capacity to earn in the trading process. This could go to 100x or even more.

Launching a margin trading exchange enables your traders to benefit from improved return ratios. It also boosts your profits as an exchange owner. Features on a margin trading platform include contracts for setting margin limits, conditional trading, and more.

If you are planning to develop leverage and margin trading exchange, Antier Solutions can help. We provide customized solutions to build a margin trading exchange from the ground up, and at the same time, we can integrate a margin trading module into your existing crypto exchange.

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