Bitfinex Tether Gold margin trading has traders excited

Bitfinex Tether Gold margin trading has just gone live. Bitfinex is the seventh biggest cryptocurrency trading exchange in terms of volume, and it was time that it introduces innovative products that traders love. As per the official press release, the Bitfinex Tether Gold margin trading feature will help the exchange’s users take advantage of innovative trading techniques available for the yellow metal.

Gold margin trading is also available on other popular crypto exchanges. Bitfinex users can trade XAUT through crypto pairs, including Bitcoin, United States dollar, and Tether stablecoin. Traders can start Bitfinex Tether Gold margin trading with just twenty percent equity holding. Interestingly, p to five times leverage is offered on the XAUT trading pairs.

Bitfinex Tether Gold margin trading can deliver lucrative results

Margin trading is well known to deliver huge returns if done right. Here, traders can borrow money to enhance their leverage, thereby giving the traders an opportunity to improve their profits significantly. In case the trade goes perfect, the increased leverage delivers impressive benefits. On the contrary, if the trade goes the wrong way, the potential risks are amplified too.

Paolo Ardoino, Bitfinex’s chief technology officer, explained that Bitfinex Tether Gold margin trading would allow the traders to employ sophisticated trading techniques through appropriate hedging. Moreover, exposure can be controlled suitably through the leverage setting to control risk appropriately.

XAUT margin trading is an ideal product in the current context, given the increase in gold prices globally. Additionally, more exchanges are reporting the increase in interest for gold trading pairs, and its safe-haven status will only strengthen this trend in case markets turn volatile. Any untoward turmoil in the equity market can spark a race towards a safe-haven, and such trading products will be in high demand.

XAUT margin trading comes with solid credentials

Each Tether Gold token is equivalent to one troy ounce of physical gold on a London Good Delivery gold bar. The underlying physical quantity represented by the XAUT is safely secured in a Swiss vault. This cuts down on the costs related to the storage of real physical gold and regulated access. The cost savings are passed over to the exchange’s users in terms of low fees and high leverage.

Bitfinex Tether Gold margin trading will have direct competition from PAX Gold. Bitfinex did not comment on whether the physical gold stored in the Swiss vault will be subject to any audit.

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