You can now do margin trading with Ripple (XRP) and Bitcoin Cash (BCH) on Kraken


Kraken is one of the first and prominent crypto exchange that offers margin trading to trade cryptocurrencies. Citing demand, the exchange has gradually expanded its product with a variety of crypto coins and has recently extended margin trading for XRP and BCH.

Most of the time, exchanges usually provide margin trading option only with cryptocurrencies which are in demand and are extremely liquid. Citing the rising demand for XRP and BCH (post forking) in the recent rally,

Kraken has announced expanding margin trading option for both coins.

Leverage amounts

When it comes to margin trading, it’s crucial to understand the leverage amounts and how it works. Below is a general guideline:

Bitcoin Cash
BCH/XBT – 2x
BCH/USD – 2x, 3x
BCH/EUR – 2x, 3x
Ripple
XRP/XBT – 2x, 3x
XRP/USD – 2x, 3x, 4x, 5x
XRP/EUR – 2x, 3x, 4x, 5x

The borrow limits depend on the verification level of a user’s account.

Bitcoin Cash: Tier 1: 1 BCH, Tier 2: 5 BCH, Tier 3: 50 BCH, Tier 4: 500 BCH

Ripple: Tier 1: 5,000 XRP, Tier 2: 25,000 XRP, Tier 3: 250,000 XRP, Tier 4: 2,500,000 XRP

Kraken plans to charge a brokerage of Margin open fee = 0.02% and a Rollover fee = 0.02% / 4 Hrs

This addition expands the company’s margin offering to eight (8) assets, which already includes: Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR), and Tether (USDT).

Margin Trading is extremely risky though. Margin Trading is a product for experienced traders, margin trading is often associated with the increase in volumes of a cryptocurrency.

Kraken, which anyway is the biggest exchange in terms of EUR volume, may further boost the volumes for XRP and BCH in days to come. Whether one would see these volumes getting converted into positive upticks for coins is something that traders will definitely watch out for.

 


Like it? Share with your friends!

Wilson

Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at wilson@cryptomenow.com

You may also like