HitBTC, one of the most advanced digital asset exchanges in the crypto industry, has added margin trading with up to x10 leverage on its main platform. This new feature allows users to open positions of a larger size with a smaller initial deposit by using additional funds that are provided by a margin lender and ensured by a certain percentage of the full order value.
Margin trading is available for the same order types HitBTC offers to its users for seven crypto pairs: BTC/USDT, ETH/USDT, BCH/USDT, XRP/USDT, ETH/BTC, BCH/BTC, XRP/BTC. The key difference is that all long-buying and short-selling operations that are leveraged will give users the chance to multiply capital gains. Now, the exchange has made it possible to trade at a leverage of up to 10:1. This ratio of borrowed funds to deposited collateral empowers traders to increase both their position size and, in turn, their potential profit tenfold. For instance, at a x10 leverage ratio, users only have to commit 20% capital, or $200, to open a $2000 position.
Among the opportunities presented to users by this addition to the HitBTC platform is the ability to change current position size within a valid buying power range. It follows that, in the case of a partial closing, the realized PNL (profit and loss) will be calculated in proportion to the value of this position. Traders can also manage liquidation risks by transferring funds to and from the margin account so long as the required margin, which is needed to keep their positions alive, is maintained.
Besides regular HitBTC trading fees, which are charged based on total trading volume, there are also margin fees applied to the use of borrowed funds. Margin fees are fixed and charged once every eight hours.
To support clients that are new to margin trading or those that want to test the feature’s functionality before trading with real funds, HitBTC has recently launched a demo platform that gives traders the ability to test margin trading with a virtual balance (limited amount of markets available). For more details about the margin trading tool in demo mode, please check HitBTC’s relevant guidelines.
HitBTC is a crypto exchange with over 800 trading pairs. The platform was created in 2013 and provides exchange, custodial, and other related services. HitBTC offers a wide range of APIs such as REST, WebSocket and FIX API. The exchange’s UI was developed to meet the needs of the most demanding and sophisticated traders. Users can take advantage of competitive trading fees via HitBTC’s Trading Fee Tier system.