Essential Components of a Margin Trading Exchange

Pause and think.

Could you really call yourself a leading crypto exchange with leverage/margin trading missing from your service line? Look around and see for yourself almost all crypto exchanges that are worth their name allow their users to trade crypto with leverage.

Prime XBT, BitMEX, OKEX, Kraken, Bitfinex, Poloniex — name one and you will find them calling traders from the rooftop with a big board in mentioning announcing — ‘Leverage/Margin Trading’.

So why not take that extra step and add coding to your menu as well?

It will be fantastic, to say the least!

So now, the next question…an important one indeed

What to expect in a cutting-edge crypto exchange with margin trading?

Simple trading interface

To put it simply, allow traders to execute complex trades with a simple interface. Applying leverage to trade shouldn’t take more than a click or two, whether it is a market or a limit order. Designed for efficiency and ease-of-use, the platform should support even a first-time trader to trade in a hassle-free manner.

Multi-layer security

Two essential features the crypto exchange with market trading just cannot survive without are two-factor authentication and a wallet underpinned by multi-signature feature. Two-factor authentication, as you may be familiar with, lets users go ahead with a transaction only after they input a code sent to their mobile phones. A multi-sig wallet is a configuration requiring approval from at least two devices to authorize a transaction. Thanks to this configuration, thieves will be unable to steal even if one of the devices has been hacked or stolen.

Web Protocol Security includes

  • HTTP Strict Transport Security (HSTS) — ensure all browsing sessions have HTTPS protocols
  • X-Frame-Options — safety against clickjacking attacks
  • Content Security Policy (CSP) — prevents XSS attacks
  • X-XXX-Protection — secures against cross-site scripting attacks

Support for advanced order types

As a frontline crypto exchange, you should allow traders to execute advanced orders along with buying and selling cryptocurrencies. Advanced orders bring together conditional orders and basic order types. Such orders include Stop limit buy order, Stop loss take profit order, Stop loss take profit limit order, Trailing stop buy/sell order, Trailing stop limit buy/sell order, and more.

Risk Management

The ability to clock profits increases manifold in margin trading; so is the risk of making a loss. Using leveraged trading with proper risk management helps your customers to minimize losses. There should be a system to place a stop loss. Filtering of trades using risk/reward ratio also helps to keep things under control.

Summing up

Having a cutting-edge leverage and margin trading exchange software is an advantageous step for you as well as your traders, enabling you both to earn. However, to reap the full benefit of such a software script, make double sure that the platform has all the necessary features that make it really qualify as a next-gen tool.

If you are planning to develop leverage and margin trading, Antier can help. Backed by a team of experienced blockchain engineers and finance experts, we can provide you with a feature-rich margin trading exchange reinforced with all essential components.

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Antier Solutions

Antier Solutions

Decentralizing the world since 2016 through full-stack custom blockchain solutions. Follow this space for DeFi, DAO, NFTs, Metaverse, Crypto Exchanges & more.