Crypto exchange KucCoin has announced the launch of margin trading for cryptoassets.
According to the update published Oct. 25, KuCoin will give users access to margin trading beginning Oct. 31. With the new product, traders will able to leverage borrowed cryptoassets as principal in their transactions. Users will also have the ability to enact short positions by selling the lended crypto.
While KuCoin did not announce the leverage multiplier for the service, they are offering a 20% discount promotion for investors using KCS to pay for margin trading transaction fees.
KuCoin will release an all-new service on October 31, 2019 (UTC+8): Margin Trading.— KuCoin Updates (@KuCoinUpdates) October 25, 2019
Users will be able to enjoy a 20% discount in KCS when using it to pay the transaction fees generated in margin trading.
Read more about this news on:https://t.co/gnlJf2T3Lr pic.twitter.com/zTYY6oc355
The official update also reminded users of the substantial risk involved in margin trading, even in comparison to tradition transactions,
Margin trading refers to the practice of borrowing funds with a relatively lower amount of capital to trade financial assets and obtain bigger profits. However, due to market risks, price fluctuations, and other factors, you are strongly recommended to be prudent about your investment actions
KuCoin will utilize a risk management system for individual tokens to determine the maximum amount of leverage that can be applied in transactions.
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