Bitfinex Launches Margin Trading on Tether Gold
From January 30 onwards, Bitfinex declared in an announcement that it had launched margin trading for Tether Gold (XAU₮) trading pairs, which include Bitcoin, US dollar, and USD. As per the press statement, it said that this margin trading feature would entail starting equity of 20 percent and it offers till 5x leverage. The exchange also declared that the extreme leverage opted for BTC/USD which was 3.3x earlier had been increased to 5x.
With the help of Margin trading, traders can borrow funds, thereby increasing the leverage, which offers them the possibility for greater profits when it is contrasted with traditional trading. Nevertheless, the possibility for higher rewards comes with a greater level of risks; especially, taking into consideration the instability of digital currencies.
Last week, Tether declared the launch of Tether Gold (XAU₮), where the gold backing was held securely in a vault in Switzerland. Moreover, the new product was acquirable on the Ethereum blockchain as ERC -20 token and TRC20 token in Tron blockchain.
Paolo Ardoino, Chief technology officer at Bitfinex, stated that,
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.
Further, Holders of Tether Gold can be able to abstain from the drawbacks, which are associated with physical gold like high storage costs and its restricted accessibility.
Currently, it is considered that Tether Gold (XAU₮) is the sole product that offers its users zero custody fees; also, it has direct authority over physical gold stored safely in Switzerland vault, which speaks for itself the best anti-threat measures and the world-class security offered to its users.