In recent times, the adoption and usage of digital currencies has increased in the digital world. One can trade these assets only on crypto exchanges. Users have many ways to trade crypto in the exchange, but margin trading functionality is a special one among others and many crypto traders prefer this trading module.
Margin trading is one of the well-known features in the crypto marketplace. With this feature, many crypto exchange platforms made enormous amounts of profits last year. Generally, investors will have the desire to increase profits with small investments. Having said that, the margin trading feature will help traders to borrow the funds and begin trading with a low investment.
By offering this trading service, exchanges like Binance, Kraken, Bitmex, and eTORO are making huge revenue. This prompted many people to acquire the best margin trading exchange development solution. As a startup, developing a crypto exchange that primarily focuses on margin trading will help you to entice many crypto users.
Furthermore, you can run your margin trading exchange business in the market for a long period and reap profits via interest easily. However, if you’re a newbie in the crypto space, you might have a lot of queries on your mind just like others what is the exact meaning of crypto margin trading, how does margin trading work in an exchange platform, and how to develop a crypto exchange with margin trading functionality?
In this article, we will help you to have a clear perspective of crypto margin trading, margin trading exchange development, and other vital factors related to it. In the end, you will get an ideal solution to build a crypto margin trading platform.
Well, let us begin with…
What is Crypto Margin Trading?
Margin trading is the dominant trend in the crypto marketplace. Many traders and exchange owners have benefited from using this functionality. Margin trading is a feature where the exchange will provide funds to amplify the potential returns while buying/selling cryptocurrencies.
With margin trading, crypto users can leverage increased buying & selling power and can open positions that are greater than their account balance. You might come across some popular terms like leverage, liquidation price, margin calls, etc. These are the few terms that come under margin trading
In the Crypto exchange, margin trading allows users to reap greater exposure by borrowing funds. Besides, margin trading allows users to multiply the amount of capital to facilitate crypto trading. Margin trading is also known as leverage trading. Leverage is the amount by which a user can multiply their position without any hassle.
Leverage crypto trading is a prominent feature in slower-moving and low-volatility markets. The major difference between margin and leverage is, margin trading can be done by providing collateral. Whereas in leverage trading, there is no need for any collateral. In leverage crypto trading accounts, borrowed funds are completely provided by the admin. So the admin of the exchange will earn interest based on the demand for leverage funds.
How Does Margin Trading Work in Crypto Exchange?
In general, borrowing funds and increasing capital by providing collateral is known as margin trading in the crypto exchange. So how does the margin trading featured crypto exchange works?
Consider yourself as the user in the crypto exchange which has a margin trading feature. If you need to perform Margin Trading, you need to pay some percentage of the total order. The first investment by you is known as the margin. So, it comes under the leverage concept. The leverage will show the ratio of borrowed funds with your margin. For instance, if you want to open a trade for $10,000 at a leverage of 10:1, you need to pay $1000 as a margin.
In general, crypto trading platforms will have different sets of rules & leverage rates to perform margin trading. For example, In Forex platforms, margin trades are frequently leveraged at a 50:1, 100:1, and 200:1 ratio. When it comes to crypto margin trading, it ranges from 2:1 to 100:1. Besides, the cryptocurrency community often uses the term ‘X’. such as 2x, 5x, 10x, 50x, 100x, etc.
Most users perform margin trading with 100x leverage in the crypto exchange. Meaning he/she can multiply the profits by 100 times. But at the same time, the user will have a high risk. This is due to the high volatility and one can not predict the price fluctuation of crypto assets. However, one important thing that the user and you must note is that the risk with margin trading in crypto exchanges will not be equal to the profit ratio.
This is how crypto exchange platforms with margin trading work. Each exchange has a different leverage ratio, so the profit ratio differs from exchange to exchange.
Hope you have significant knowledge of crypto margin trading and how it works. As said earlier, developing a crypto exchange platform with margin trading is an ideal course of action for embracing the blockchain world. However, there are many notable reasons to invest in the crypto margin trading exchange development. Well, let’s see…
Reasons to Invest in Margin Trading Exchange Development
In 2023, crypto traders are looking for a platform that has margin trading functionality with a high-profit ratio. But most crypto exchanges don’t have this functionality. So, you must take this need as an advantage and build your exchange with margin trading. As a result, you can fill the gap which is needed by crypto traders.
Apart from this, there are three major reasons for investing in margin trading exchange development.
Margin trading not only makes profits for users but also benefits the crypto exchange owners. It allows the exchange owners to reap huge profits through transaction fees. For instance, if the owner of the exchange charges a fee of 0.1% on every order, then by offering a 100x leverage on a $1000 margin, the owner can easily earn $100. This is one of the major reasons to invest in margin trading exchange development.
Enhanced Revenue Streams
When you develop an exchange with margin trading, you can enhance your revenue stream through the returns you get from your users’ leveraged transactions. More leverage transactions can generate a lucrative amount of income in a short period.
Increase user Base and Boost Profit
By investing in crypto margin exchange software, you can offer your users a better crypto trading experience & user engagement that they will never get in normal exchanges. It not only offers engagement to your existing users but also grabs several new crypto users on board from various countries. Besides, it will automatically boost your overall revenue and profits.
Considering these reasons, many crypto startups are building a cryptocurrency exchange website and app with margin trading functionality.
You have collected all the valuable reasons to start a margin trading integrated crypto exchange. Now, it’s time to know the steps for building a successful crypto margin trading exchange platform.
How to Develop a Crypto Exchange with MarginTrading?
Creating and deploying a crypto exchange with margin trading is not hard as you think as we have a rapid solution for margin trading exchange development. In this digital world, you need to be one step ahead of your rivals. So opting for an expeditious solution for margin trading exchange development is the smart move.
If you are a person looking to develop a crypto exchange with margin trading, you can get our premium white-label crypto exchange software. It is a ready-to-deploy exchange software that helps you to build a superfine crypto exchange with margin trading features and other essential plug-ins within 7 – 15 days.
Even though you leverage our splendid white-label cryptocurrency exchange software for building an exchange website, you must consider some vital parameters.
Here we list some important factors that you need to consider for developing a crypto exchange with margin trading.
- Have unique and peculiar business requirements
- Note the pros and drawbacks of the existing margin trading crypto exchanges. If you find any of them, try to resolve them on your exchange.
- Check out the laws and regulations in the country where you are planning to launch your crypto margin trading exchange platform.
- Have the required amount of funds for creating a margin trading crypto exchange.
- Get the white-label solution from a genuine and outstanding white-label crypto exchange software development company – Coinsclone. We are here to assist you with round-the-clock support
- Integrate all the essential crypto trading features that are needed for your exchange.
- Implement the top-level security modules to safeguard your margin trading crypto exchange from hacking and other malware activities.
- Run a beta test in your margin trading crypto exchange.
- Once the beta test is done, your exchange will be ready for deployment. Then, Deploy your margin trading exchange with the support of a professional white-label crypto exchange development company – Coinsclone.
- After deployment, Start promoting your margin trading exchange platform to your targeted crypto audience.
By following these ideal steps, you can easily build a margin trading integrated crypto exchange platform effectively. Next, let us see…
Desirable Features of Margin Trading Exchange Development
In addition to margin trading, you also need to incorporate some trending features to entice your users. Here is the list of salient features that you must incorporate while building a crypto margin trading platform.
- Powerful Matching engine
- Market making
- Multi-layer security
- Multi-crypto wallet integration
- Standardized GDPR compliance
- Risk management
- Robust admin panel
- Conditional trading
- Multiple account management
- Leverage options
- Crypto derivatives trading options
- Advanced order types
- Auto deleveraging
- Partial close trades
- Insurance funds
By enabling these ideal features, you can launch a successful margin trading crypto exchange. You gain these many features as a whole package in the best margin trading exchange development service. You can get this service from a trustworthy crypto exchange development company in the industry. One such exchange development firm in the crypto space is Coinsclone.
Why Choose Coinsclone For Margin Trading Exchange Development?
Coinsclone is an outstanding Cryptocurrency exchange software development company in the blockchain industry. We excel in offering all kinds of crypto exchange clone scripts and premium white-label crypto exchange solutions at affordable rates. We provide a top-notch margin trading exchange development service with cutting-edge trading features and security modules with impeccable outcomes. We understand the importance of the Margin Trading feature in the marketplace. Thus, our experienced developers have blended this functionality well into the crypto exchange software.
You can acquire a cluster of benefits by getting our exclusive crypto margin trading exchange development solution. Such as
- Instant deployment
- Affordable solution
- You can get advanced API integrations
- You can easily expand your business and boost your ROI
- 100% Optimizable
- Wide range of borrowing limits
- Extremely responsive and more
You gain these many benefits by employing our margin trading exchange development service.
Are you still having queries regarding this service? Feel free to contact our experts right away and check out our free demo!