London-Based Crypto Exchange, CEX.IO, To Scale Leverage Options With Beta Release In April
Cryptocurrency trading markets have been on a gradual increase since the strong bullish run towards the end of 2017. CEX.IO, a digital currency exchange platform based in London, is among the platforms that have benefited from this market reaction. The platform is set to add the leverage options for its crypto traders while scaling the number of available pairs for this service from April 2019.
This move signals the potential of crypto markets in Europe and other parts of the world. Some crypto stakeholders are optimistic that the market will one day match the $5 trillion forex market. However, this is as speculative as the predictions of digital asset prices given the volatility.
CEX.IO new leverage ratios apply to a wide range of assets tradeable within its network. Traders can exchange forex, CFDs amongst others with the following ratios; 1:10, 1:5, 1:3, and 1:2. The options are designed based on regulations and the dynamics of a specific market.
Normally, traditional brokers facilitate trades that have leverages owing to their proximity to liquid markets. This automatically reduces commission charges and enhances faster transactions between the players. The trend, however, seems to be changing lead by the big exchanges like Gemini, Poloniex and Coinbase who began OTC trades a year ago.
Over-the-counter transactions have proven to be complementary to the features embedded in crypto exchanges. In addition, a good number of players in the crypto trading sphere had started leveraging OTC for proxies in executing digital currency trades.
CEX.IO BROKER is expected to further improve its ecosystem with a beta release set for April. The entity was formed 7 years ago under the Money Services Business category in London. Basically, CEX.IO operates under the logic of a self-regulation link and is only subjected to the European Union Law. Initially, the platform operated as cloud miner until the scaling of its operations to market trading.
Oleksandr Lutskevych, the CEO of CEX.IO, said that the platform began margin trade services a while back and was among the pioneers to include cryptocurrencies. However, the firm observed that its target market needed more products to maximize their trading experience hence the new leverage ratios. He added that;
“By diversifying our portfolio of services, we aim to bring crypto closer to a wider audience of multi-asset traders. For example, if you are used to forex trading platforms, you will find familiar functionality on CEX.IO BROKER. With this convenient platform, traders will get a chance to add short and long positions with leverage in crypto.”