Leverage trading on Primexbt platform and the Service Fee

What is financial leverage?

Thanks to financial leverage, the investors own a very great tool to multiply their capital with many times. If you wisely make use of leverage, you can easily achieve large earnings. In a simpler expression, investors shall use borrowed capital for investment instead of using completely their own existing capital, which is aimed at achieving larger earnings.

In financial markets such as forex, stocks, gold, oil, and crypto currencies, the trading platforms will provide traders with many different levels of leverage. So, you can choose the appropriate level of leverage in order to open trading positions that are bigger than your existing capital in account thousands of times.

If you execute a trading based on leverage, you can potentially raise your earnings by a certain factor; however, the risk of loss shall also increase, and of course your earnings may be reduced.

Another advantage of trading with leverage in general is that it allows you to execute selling short for your assets. This means you can earn money when the price of your assets reduces; for example in case of having a selling position, and you are borrowing coins mentioned to be sold in future.

As mentioned, the maximum leverage on PrimeXBT is 200:1 for crypto currencies pairs and up to 1000:1 for a number of their forex pairs. This means that you only need to deposit 1% (or 0.1%) of the required capital in order to reach that position.

The accurate leverage you will be allowed for a position will depend on the type of asset you are trading as well as the size of the position you are taking. For example, there are basic requirements for deposit and the resulting leverage for a range of assets.

Leverage ratio

  • Cryptocurrency Market

As above mentioned, Primexbt allows investors to margin trade cryptocurrencies with leverage up to 1:100, however, this ratio depends on the amount of money in the account; the larger the amount is, the smaller the maximum leverage ratio is used, and this dependence is varied for each cryptocurrency.

primexbt leverage bitcoin usd

For example bitcoin usd leverage

Margin Requirement – Margin Requirement Ratio expressed as a percentage (%) of the contract’s full position size. Depending on the currency pair and Forex brokers, the deposit amount for each asset class will be different.

max leverage on each cryptocurrency

The maximum leverage ratio used depends on the amount of money in the wallet for BTC; for the remaining types of coin, you can refer in the official website https://primexbt.com/fees at title Contract Specification.

Note: The difference between Margin trading in Prime XBT and that from other platform, in Prime XBT, the investors can borrow money from the platform without paying for any interest, while in other platforms, the investors can only borrow money from people who owning idle assets on the platform, so they have to pay for principle as well as interest rate for the lender if they want to make Margin trading.

  • Forex and CFDs Markets

For forex, the maximum leverage ratio used is 1:1000, which is also a very high ratio, higher than many forex platforms on the market.

Amount in account (basic currency unit) Maximum leverage ratio
0 – 300,000 1:1000
300,000 – 1,000,000 1:500
1,000,000 – 5,000,000 1:100
>5,000,000 1:50

For assets traded under CFDs such as energies and indexes, the maximum leverage ratio is 1:100, and 1:500 only for metals.

Fees of trading on PrimeXBT

Trading fees are also an important factor to be considered when you choose a trading platform because you of course do not expect your earnings are not able to cover the fees. However, as mentioned before, PrimeXBT trading platform has a much lower level of fees than that of entire ecosystem

PrimeXBT is quite transparent with their fees with two types

  1. Trading fee: this fee is charged when you enter a command.
  2. Overnight Fee: this fee is charged for an overnight position

Trading fees on Primexbt is 0.01% – 0.05%, which is much lower than equivalent CFD brokers like IQ Option etc. PrimeXBT also offers some attractive discount rates which can be gained by alternate trading volume within 30 days.

Comments (No)

Leave a Reply