News From The Crypto Currencies Scene

Kraken Launches Margin Trading For Bitcoin Euro Pair

Kraken Launches Margin Trading For Bitcoin/Euro Pair

The San Fransisco-based Bitcoin exchange Kraken announced earlier this week that they have launched margin trading inside their exchange. Margin trading is well-known from the Forex industry, where you trade on the value of a currency going up or down and if you are right, you get a return based on the movement in price.

Kraken is one of the first and one of the only places where you can now margin trade Bitcoins against the Euro currency, however it is only available for Tier 3 and Tier 4 accounts at the moment, but those interested in margin trading can contact Kraken to get their accounts to that level.

While margin trading is only available in Bitcoin/Euro at the moment, people with an account in USD can still trade, they will be subject to exchange costs however. The cost to do so is relatively low and with the trading fee being the same as in the Bitcoin exchange it is also a very small cost, averaging at 0.10%.

Kraken will also be offering leverage for those who wants to trade, which means that you - at launch - can trade at three times the volume you would otherwise do. So if you trade with three times leverage and gain 4%, then you have gained 12%, but the same also goes if you lose 4%.

Within a few weeks it will also be made possible to trade with 20x leverage for those interested in that. While leverage can help gain profits, it is important to understand that it can also drain your supplies a lot faster if your trading goes bad.

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