BitMEX to Offer XRP Perpetuals with 50x Leverage

BitMEX, one of the leading crypto derivatives exchange, is set to launch XRP perpetual Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term on February 5.

Announced on Twitter, the derivatives giant will offer Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term of up to 50x for the XRP/USD swap contract. The decision was not abrupt as the platform already announced the creation of such a contract last month.

We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020.

— BitMEX (@BitMEXdotcom) February 4, 2020

Despite being the third-largest digital currency in terms of market cap, XRP is facing criticisms from the community for its resemblance to securities. The centralized structure of the currency also faced backlash.

Arthur Hayes, co-founder and CEO of BitMEX, also addressed this and stressed on the trading opportunity with the token.

Is it called Ripple, XRP, or dogshit? Who knows, who cares. It’s worth more than zero so it’s time to trade the USD pair on BitMEX. Boo-Yaka-sha! https://t.co/pa3T5vd5kl

— Arthur Hayes (@CryptoHayes) February 4, 2020

However, the announcement didn’t make much impact on the market as each XRP token is trading at $0.25 apiece, being almost flat in the past 24 hours. The coin, however, gained 7 percent in the week from the overall bull run in the market.

Derivatives everywhere

Perpetual contracts are becoming very popular in the crypto industry lately. These instruments are very similar to traditional futures contracts and grant investors the ability to profit from selling digital assets, either short or long, similar to futures contracts. However, unlike futures contracts, perpetual contracts have no expiration date.

Many major platforms, including Bithumb, Gate.io, and Liquid, are betting big on such contracts, especially with the increasing demand for crypto derivatives.

Also today, Binance Futures, the derivative-focused platform of the crypto exchange, announced the addition of ZEC/USDT swap support.

#Binance Futures Will Launch $ZEC/USDT Perpetual Contract With Up to 50x Leveragehttps://t.co/R83gj10hA2 pic.twitter.com/ccS9gjobHW

— Binance (@binance) February 4, 2020

The platform also beat BitMEX in listing XRP perpetual, as last month, it added XRP/USDT contract with a maximum leverage of 75x. Other platforms like Delta and BaseFEX are also listing similar XRP-based instruments.