Kraken Enables Bitcoin Cash and XRP Margin Trading
Now one of the largest Crypto Exchange Kraken has launched the margin trading options for the two popular and most famous digital cryptocurrencies by the market capitalization, that is Ripple(XRP) and Bitcoin Cash.
High-Risk Margin Trading Expanded at Kraken
The margin trading allows the users to use their accounts with the help of funds which they actually do not possess. This lead to some of the more profit but apart from that also amplify the losses.
Kraken which is a San Francisco based crypto exchange has added two more assets to its portfolio. As of now, users can use trades on Bitcoin, Tether, Ethereum, Ethereum Classic, Augur and Monero. According to the company report, XRP and Bitcoin Cash has been added to the portfolio.
The available borrow limits will depend on the account verification level. The top tier account would be going to get 2.5 Million XRP or 500 Bitcoin Cash the company has posted a warning about the dangers of the high-risk trading and recommends having a healthy account balance to back up the margins.
“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. For this reason, you should always maintain adequate balances of other collateral currencies to maintain your margin positions.”
Kraken further stated:
“Be extremely careful when trading collateral currencies for BCH or XRP when you have margin positions open since this will reduce your account equity and could possibly lead to the liquidation of your margin positions.”
Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.