AlphaPoint, a crypto software and technology provider, announced at the CoinDesk’s Investment NYC conference that it would be launching margin trading for its clients. By utilizing its software, the technology provider will be supporting margin trading with a range of trading options and control over crypto exchanges and brokerages.
Margin trading is when an investor buys a security, in this case, a cryptocurrency, using borrowed money. Margin trading is becoming prevalent and popular in the crypto industry. Most of the popular leading exchanges are implementing the feature. Bakkt, Kraken, and Coinbase’s trading platform have the feature. Binance also launched margin trading in July 2019.
According to Patrick Shield, the spokesman, AlphaPoint’s platform can be customized to serve the clients trading in different regulatory regimes and markets better.
“We have created a highly configurable platform, and there will be no need to create a one-size-fits-all model. The platform has configurable leverages, minimum deposit, liquidation levels, sizes, and fees. It will also require approval workflow for the end users,” said Shield.
During the launch, the company said that clients are yet to implement AlphaPoint’s margin trading. However, according to a recent press release, a number of firms, including Canadian cryptocurrency trader National Digital Asset Exchange (NDAX), are already beta testing the new platform.
The founder and CEO at NDAX, Bilal Hammoud, said in a statement that he is excited and longing to partner with AlphaPoint. “The partnership will introduce BTC to CAD margin trading to the crypto industry, allowing investors to enjoy a technologically advanced, compliant, and secure platform,” said Hammoud.
Margin trading, however, comes packed with its pushbacks. Some countries across the world are discouraging crypto margin trading and have even placed strict control policies around the policies like it is the case in Japan.