Kraken launches Ripple and Bitcoin Cash margin trading
Kraken, one of the leading US based cryptocurrency trading platforms, has launched margin trading for two digital currencies, Ripple‘s XRP and Bitcoin Cash [BCH]. Announced today, this latest addition extends the offering to eight more digital assets such as Bitcoin [BTC], Augur [REP], Tether [USDT], Ethereum Classic [ETC], Monero [XMR] and Ethereum [ETH].
The currency pairs for Bitcoin Cash and Ripple’s XRP are available with Bitcoin [BTC], US dollar and Euro [EUR] on the trading platform. However, the level of verification procedure of the user’s account determine the borrow limits. It is clear that the clients are free to carry out margin trading on the new trading platform.
Interestingly, a bulk of clients prefer to opt it for the improved and advanced UI along with integrated tools and charts. Above all, it also supports mobile trading to garner attention from the clients. One of the fundamental reasons for users to get attracted to margin trading is for permitting them to make use of their accounts for larger profits, despite, undertaking greater risks.
Margin trading possesses dual characteristics implying that if it can provide the users with wide range of profits, then it can equally bring about hefty losses. This needs to be taken under consideration that in case of heavy losses, the margin positions must be closed to ‘‘protect the funds you borrowed to open the positions.”
However, when it is said that Bitcoin Cash and Ripple’s XRP are ”not collateral currencies’‘, then it implies that margin positions can not be opened against BCH and XRP value. It is recommended to avoid such situation and for maintaining margin positions, one must have adequate balances of different collateral currencies. Users should take careful ‘‘when trading collateral currencies for BCH or XRP” at a time when the margin positions are not closed. This is because it will bring down account equity of the user and is likely to initiate liquidation of the margin positions.