Bitfinex has unlocked a feature on its platform that now enables users to trade Bitcoin (BTC) and Ethereum (ETH) against Tether (USDT) with up 100x leverage. Although Bitfinex already had a leverage trading feature, it only enabled users to leverage up to 3.3x.
Bitfinex is a Hong Kong-based cryptocurrency exchange that was founded in 2012 by Giancarlo Devasini and Raphael Nicolle. Bitfinex was one of the earliest cryptocurrency exchanges and has grown to become one of the most influential ones in the years since its birth.
The maximum leverage also regulates the volatility an asset must-have for the trade to liquidate. On a 3.3x leverage, a price change of almost 30 percent should occur if a trader is to liquidate.
However, on the 100x leverage, trading a price shift of even 1 percent is sufficient for liquidation. This is the reason why BitMEX that offers similarly high level leverages has so many liquidations.
The exchange may have launched a leverage trading platform, even so, the service is not available in few countries, including the USA, Switzerland, Seychelles, and Canada.
Bitfinex’s Chief Technology Officer (CTO) Paolo Ardoino expressed his excitement for the platform. He stated that this expansion would allow the exchange to cement itself as a “market leader in innovation.”
Bitfinex leverage trading platform: Competition
Since the launch of its new derivative contract Bitfinex has recorded over three and a half million dollars ($3.5M) of trade volume across the last twenty hours. Although it is still way below BitMEX’s trading volume of slightly less than five billion dollars ($4.6B). Regardless it is still a good start for the exchange and the number is expected to grow significantly in the days to come.
The exchange has attracted trouble and has been the victim of cyberattacks.
