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Digital Currency Revolution Series: KuCoin Announces Launch Margin Trading Date For Crypto-Assets

The new crypto-exchange ‘KucCoin’ has announced the launch of margin trading for crypto-assets. 

KuCoin, which is based at Hong Kong, will enable their clients the access to margin trading commencing from this October 31st.

With the new offering of this service, the users would be equipped to leverage borrowed crypto-assets as principal in their transactions. 

Now, such a facility under which the traders buy cryptos that one can’t afford to. The aggressive traders are now allowed to buy cryptos by paying a marginal amount of the actual value. Thereby, the traders would be able to initiate shorts in crypto-pairs as and when needed. ‘KuCoin Margin Trade’ supports their clients to lend limited cryptocurrency to other customers for the margin trading and to charge interest.

For improved trading experience, they recently came up with an announcements of ‘KuMEX System Upgrade Notice’ and ‘KuCoin Revises Exchange Center’ also.

Usually, the margin (marginal amount) is paid either in cash or in shares as security. Margin trading can be considered leveraging positions in the market either with cash or security by investors. KuCoin funds your margin trading transactions. The margin could be settled later upon square-off positions. There would be profit when the profit earned is much higher than the margin, else you suffer a loss. Please be noted that there exists an automatic renewed rule, wherein, when the borrowing is about to expire (7/14/28 days), KuCoin system will check whether the Debt Ratio of the leveraged account is below 85%:

Upon satisfying conditions (Debt Ratio < 85%): The system automatically helps the users re-borrow at the optimal interest rate in the loan market, and repays the principal and interest of the loan due.

On the flip side, Upon unsatisfied conditions (Debt Ratio ≥ 85%), the system will automatically liquidate the account for repayment. The prime objective is to make it easier for borrower to maintain leveraged positions when the loan expires.

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