Bitfinex adds margin trading on Tether Gold with pairs of up to 5x leverage
Digital asset trading platform Bitfinex has launched margin trading for Tether Gold, enabling traders to execute more advanced strategies on the metal in a digital form.
Margin trading for Tether Gold with US dollar, tether, and bitcoin, began on 30 January. These pairs can be traded with an initial equity of 20 per cent and a maximum leverage of 5x. Furthermore, the maximum leverage for BTC/USD has been increased from 3.3x to 5x.
“The launch of margin trading on Tether Gold will allow more advanced trading strategies, enabling a more sophisticated means of hedging exposure and managing risk," says Paolo Ardoino, CTO at Bitfinex. "Raising our leverage from 3.3x to 5x is a noteworthy development, and is also timely given growing interest in gold and other safe haven assets amid the recent turmoil that we've seen in equity markets.”
Margin trading enables traders to borrow funds to increase leverage, offering the potential for greater profits than in traditional trading. Still, the potential for greater rewards also comes with higher levels of risk, particularly given the volatility of digital assets.