Kraken launches margin trading for Bitcoin Cash and Ripple
Change of cryptocurrency Kraken announced the launch of margin trading for Bitcoin Cash (BCH) and Ripple (XRP).
BCH and XRP are the latest additions to the Kraken margin trading offer that includes Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR) and Tether (USDT) .
For BCH, users will now be able to exchange BCH / XBT with 2x margin, and BCH / USD and BCH / EUR with 2x or 3x margin. For XRP, Kraken introduced the 2x and 3x margin for XRP / XBT and the 2x, 3x, 4x or 5x margin for XRP / USD and XRP / EUR. The limits of the loan will depend on the level of verification of a user's account.
In his official announcement, Kraken clarified:
"Note that BCH and XRP are not collateral, which means that margin positions can not be opened with respect to the value of the BCH or XRP balances, which is why it is necessary to maintain adequate balances of other collateral currencies to maintain marginal positions. . "
The exchange also warns users to be careful when exchanging collateral currencies for BCH or XRP with open margin positions as this would reduce their capital and could lead to the liquidation of their marginal positions.
"Marginal trading allows you to take advantage of your account for more profits, also taking on greater risk," Kraken explained.
"While the trade margin can lead to higher profits, it can also lead to greater losses, and if the losses are large enough, the marginal positions can be forcibly closed to protect the borrowed funds to open positions. being forced to suffer a major loss in an operation rather than having the opportunity to try and wait for a more favorable price. "
Earlier this month, reports suggested that Kraken was considering a private offer and sent e-mails to its high-value customers informing them about investment opportunities.