Why Should you Build a Margin Trading Crypto Exchange

Trading is undergoing a colossal transformation, thanks to the emergence of cryptocurrencies, now counting in thousands. The value of digital coins like BTC, ETH, and others is astonishing and unmatched by conventional currencies. Moreover, the best margin trading exchange software can tap into the fast-evolving technologies to assimilate the traits of the stock exchanges.

Crypto traders have now large enough secondary markets to provide them the liquidity they need to encash the digital coins under their possession. Moreover, crypto products like security tokens and stable coins have taken the trading of digital currencies to the next level. And the icing on the cake has been margin trading (explained later), enabling the crypto traders to take home an amplified value of what they have deposited as a margin with the exchange.

It simply means if a trader has currency worth 1 ETH and they have opted for 100x leverage, they may end up making 100x profits than what they would have made with 1 ETH. If this is hard to comprehend, here is the step-by-step explanation:

  • You introduce the leverage/margin exchange facility on your exchange platform. This allows a trader to deposit a margin of 1 ETH and take a trading position as high as 100 ETH.
  • Suppose the current ETH value is $235 and the trader expects it to rise to $260.
  • However, they just have one ETH in their account, depriving them of the opportunity.
  • Your margin trading facility clocks in to bail them off. Leveraging their single ETH, they successfully trade a 100 times, taking their position to $26,000.

Leverage, also known as margin trading, is a facility that allows traders to borrow additional funds to escalate their position manifold. In other words, rather than investing the market value, the trader would deposit with a leverage ratio extended by the exchange, enabling to borrow a sum significantly larger than the margin that they have streamed in.

The term ‘margin’ refers to the minimum amount an investor would need to deposit with the exchange.

There is a string of reasons to convince you to go for margin trading exchange development –

  • Significantly better return ratios
  • Progressive API integrations
  • Long-term profit-making ecosystem
  • Flexibility to reorganize the funds

To ensure efficient operations of leverage and margin trading platform, you need to back up your margin trading exchange development venture with some exclusive features such as the robust matching trading engine, smart order routing for automated determining of the optimum prices, and Standardized GDPR compliance.

You will need to provide traders with a risk management ecosystem to help them minimize loss values. Such an ecosystem will include options such as Stop-Loss and Take Profit.

They will also require multi-account management to be able to hold and manage multiple accounts and place bulk orders.

Yet another feature the traders may expect is conditional trading, enabling to determine conditions for buying and selling at pre-set prices.

Margin trading exchange development is a win-win situation for the crypto owners as well as the traders. Your traders are sure to love a feature that enables them to enhance the value of their investment several folds. And you too as the feature will open up a stream of revenue for the long term.

With experienced blockchain developers on board, Antier Solutions can create the best margin trading exchange for you.

Connect with our subject matter experts to share your business needs.

DeFi, Crypto banking, White label cryptocurrency exchange development, Crypto wallet development, coin development, fintech, Blockchain

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