A leading crypto exchange platform Kraken has recently announced margin trading for Bitcoin Cash and XRP. The exchange has added Bitcoin Cash (BCH) and Ripple (XRP) to Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR), Bitcoin (BTC), and Tether (USDT) bringing its margin trading offering to a total of eight cryptocurrencies.
Now, Kraken will be supporting leveraged trading for BCH/XBT, BCH/USD, and BCH/EUR markets. Also, by enabling margin trading for XRP, it will offer up to 5x leverage on XRP pairings. Kraken’s news release points out to an improved user interface and integrated charts and tools as well as supporting mobile trading.
Kraken adds, “Please note that BCH and XRP are not collateral currencies. This means you cannot open margin positions against the value of your BCH or XRP balances.” Noting the advantages of margin trading, Kraken states, “Margin trading allows you to leverage your account for greater profits, while also assuming greater risk. – This means that you may be forced to take a large loss on trade rather than having the option to try and wait for a more favorable price.”
With that, the exchange advises its users to keep balances of collateral currencies while trading and to be cautious when trading collateral currencies into BCH and XRP with margin positions open, as account equity will be reduced. Kraken charges a 0.02 percent fee for the opening of a margin position, plus 0.02 percent rollover fees per every four hours that the position is open.
Recently, the largest crypto exchange Binance declared that it was looking forward to including the XRP/TRX (Tron) and XRP/XZC (Zcoin) base pairs.
Notably, In June this year, Korea concluded Coinone’s margin trading to be illegal gambling. Moreover, a couple of months ago Poloniex asserted it was eliminating margin products for U.S customers to remain regulatory compliant. Kraken was in the news when a New York State Attorney named Kraken, Binance and Gate.io, to the New York Department of Financial Services (NYDFS) for potential violation of New York’s digital currency regulations. After that, Kraken’s CEO, Jesse Powell, criticized the New York’s “controlling” behavior.
The San Francisco-based exchange platform Kraken is currently on the 27th position regarding adjusted trading volume, According to CoinMarketCap.