Bitfinex increases maximum leverage for BTC/USD pair to 10x
By Edil Corneille
Bitfinex, a digital token trading platform, has increased the maximum leverage for margin trading on the bitcoin, US Dollar pair to improve the user experience of the exchange’s growing customer base.
The maximum leverage on the BTC/USD pair has been increased from 5x to 10x on 17/02/21 at 5:00 PM UTC.
In addition, the maximum borrowing amount on Bitfinex Borrow has been increased from 80% to 90% of collateral for USD loans using BTC as collateral and BTC loans using USD as collateral.
“Increasing the maximum leverage for margin trading on BTC/USD will help facilitate more advanced trading strategies and the management of risk,” said Paolo Ardoino, CTO at Bitfinex. “Meanwhile, the increase in the maximum borrowing on collateral for Bitfinex Borrow will provide greater flexibility and allow our users to do more with their digital tokens.”
Margin trading enables traders to borrow funds to increase leverage, offering the potential for greater profits than in traditional trading. Still, the potential for greater rewards also comes with higher levels of risk, particularly given the volatility of digital assets. Eligible Bitfinex users can obtain financing for margin trading through the peer-to-peer (P2P) financing marketplace available through Bitfinex.
Bitfinex Borrow is a peer-to-peer (P2P) digital token loan portal that allows users to borrow funds from other users by using their cryptocurrency or fiat assets as collateral.
Recently this month, Bitfinex added Tezos (XTZ) as collateral on Bitfinex Borrow. Customers will be able to obtain loans of up to 70% of the value of their XTZ holdings in US Dollars. Borrowers can select XTZ from the list of currencies they wish to use as collateral before depositing sufficient collateral into their Margin wallet.
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