The China-based exchange OKcoin is reportedly bringing back p2p margin trading to its offering.
Shortly before the Global Bitcoin Summit in Beijing, OKCoin was one of five major bitcoin exchanges in China to cease margin and short trading, in accordance with the People’s Bank of China (PBOC) directive to curb speculative trading.
With p2p margin trading, users can finance funds to one another at a user-defined interest rate, which they then agree upon. Lenders send their interest-rate offers to the markets, to be searched and matched by borrowers.
Up to 3x leverage is available. The “Standard Fund” has no minimum loan size, while the “VIP Fund” requires a minimum amount of 1000 BTC and the signing of a waiver acknowledging the risk of their investment. Both funds are said to be insured.
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Last week, Huobi relerased a beta version of its Hong Kong-based platform bitVC, which also offers the equivalent of margin trading and interest-earning deposits.
Outside of China, Bitfinex is one of the few notable venues offering leveraged trading.
OKCoin has become a popular destination, likely due to its no-fee structure for trading. All deposits are free as well, as are withdrawals in bitcoins or litecoins. Only withdrawals in yuan are levied with a fee, ranging from 0.28%-0.4%.
According to reported statistics, OKCoin appears to be the venue with the world’s highest bitcoin trading volumes. With a total 24h volume of over 47,000, they command nearly 50% of the total market, according to bitcoinity.org. Houbi follows with 30%. In crypto trading, however, it is difficult to verify the genuine volumes traded on any exchange.
Interestingly though, OKCoin’s quotes are tabulated on their site with those of other exchanges such as Huobi, Bitstamp and BTC-e. They also offer several choices for charting style, one of which appears to be a straight integration of bitcoinwisdom.com.