Discover the advantages of a Leverage and Margin Exchange



  • Every successful cryptocurrency exchange will have margin trading integrated into its software. It benefits both the traders as well as the exchange owners in many ways.

    Leverage refers to the ratio between position value and the required investment. Margin is the percentage of the position needed.

    Some of the advantages of having a Leverage and Margin Exchange are

    • Higher Return on Investment - By maximizing the exposure for traders by placing minimum amounts, it improves their return on investment if the prices are moving favorably. Exchange owners can enhance their earnings by charging for transaction processing and deleveraging.

    • Better usage of capital - Through diversification of investments, unutilized funds can be put as a reserve improving the efficiency of capital. This can increase returns on allocated funds when the price is moving in your favor while simultaneously permitting traders to leverage. The reserve can be re-invested in future transactions.

    • Allows flexibility in trading - Through the creation of cash reserves, it allows a trader to take advantage of timely market opportunities and make use of their increased purchasing power. It counters low volatility by generating higher profits from smaller transactions executed for limited trades.

    • Lesser expenses incurred upfront - Lesser charges are paid to the broker by using leverage. Since there would be fewer chances of loss, the trader can continue operating until he has lost all his capital.

    Every trader can reap the above benefits by operating in a Leverage and Margin exchange. Get in touch with the experienced developer team of Blockchain App Factory for an enriched trading experience through the Leverage and Margin features.