margin trading - Pwim.Net

Japan’s Rakuten To Relist XRP Margin Trading

Japanese eCommerce company Rakuten has announced plans to relist XRP margin trading on its cryptocurrency exchange platform.

Rakuten’s crypto-arm discontinued services related to XRP on December 24, two days after the US Securities and Exchange Commission (SEC) announced its landmark lawsuit against Ripple blockchain company and its XRP cryptocurrency.

During that, Rakuten stated that they were unsure if XRP’s liquidity could be secured and also raised concerns about XRP’s price stability in light of the aforementioned legal battle.

But now, Rakuten has disclosed that it will resume XRP margin trading on its platform from September 8 since the exchange has determined that liquidity can be secured. Stable price delivery to customers is possible.

Rakuten is certain of securing some amount in price liquidity on XRP margin trading and confirmed the potential delivery of price stability to its XRP investors.

Rakuten has stressed the importance of price stability and exit liquidity in leveraged derivative trading. Volatile price actions and low liquidity can contribute to huge losses for customers betting on the asset. However, the exchange has guaranteed to halt the XRP margin trading again if the cryptocurrency does not perform its trading as expected. Despite reinstating XRP, Rakuten does not have adequate faith in the cryptocurrency, given its compromising position because of the ongoing SEC’s lawsuit.

Rakuten launched its crypto exchange platform in August 2019 and started offering margin trading services, with cryptocurrencies on offer, including Bitcoin, Ethereum, and Bitcoin Cash.

In March 2020, the crypto exchange added margin trading for XRP and Litecoin.

The Fate of XRP Market

While Rakuten set to relist XRP, other exchanges, including Bitstamp, Binance.US, Kraken, Coinbase, among others, are yet to show interest in reinstating the trading of the controversial cryptocurrency on their platforms, with Ripple’s fate hinging on the outcomes of the SEC’s lawsuit.

In December 2020, major crypto exchanges such as Coinbase, Crypto.com, OKCoin, and others suspended the trading of the XRP token following the SEC’s complaint against its developer, Ripple Labs.

The SEC accused Ripple Labs, the company behind XRP, of effectively running a $1.3 billion unregistered offering with its sales of XRP, which the regulator considered security and not a cryptocurrency.

However, the latest development by Rakuten signals changing sentiments around Ripple and XRP, and this could imply that other exchanges might soon follow suit with similar positive updates. But such XRP relisting attempts may not happen unless the SEC-Ripple case is fully determined and resolved.

Cboe Digital Set to Launch Bitcoin and Ether Futures Trading in January 2024

Cboe Global Markets, Inc. has announced a groundbreaking development in cryptocurrency trading, according to Prnewswire. Beginning January 11, 2024, Cboe Digital will launch margin futures trading for Bitcoin and Ether. This initiative positions Cboe Digital as the first U.S.-regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform, representing a significant advancement in the integration of cryptocurrency into the broader financial market.

The introduction of margin futures trading by Cboe Digital is a strategic move that combines the robustness of traditional financial market infrastructure with the burgeoning field of digital assets. This approach allows traders to engage in futures trading without the need to post full collateral upfront, thus offering greater capital efficiency compared to traditional non-margined futures trading. This margin model not only enhances capital efficiency but also marks an evolutionary step in crypto trading, catering to both institutional and individual investors.

The launch is backed by a coalition of 11 leading firms from both the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush. These partnerships reflect a strong industry support and a shared vision for advancing secure and transparent trading in digital assets.

John Palmer, President of Cboe Digital, emphasized the milestone this launch represents in building trusted and transparent crypto markets. He highlighted the importance of derivatives in providing liquidity and hedging opportunities in the crypto space. Supporting voices from the industry, including Nicola White of B2C2 and Chris Zuehlke of Cumberland DRW, also stressed the role of Cboe Digital’s initiative in enhancing institutional adoption of cryptocurrencies and maturing the crypto asset class.

Cboe Digital’s expansion into Bitcoin and Ether futures trading complements its existing offerings in the spot crypto market, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. The platform will provide detailed margin requirements and risk management tools on its website, ensuring a comprehensive and transparent trading experience.

Cboe Global Markets is renowned for delivering market infrastructure and tradable products across multiple asset classes, including equities, derivatives, FX, and digital assets. Cboe Digital operates in compliance with regulatory standards set by the CFTC and is licensed by the New York State Department of Financial Services. Looking ahead, Cboe Digital is exploring expansion into physically delivered products, contingent on regulatory approvals, signaling its commitment to innovation and growth in the digital asset space.

Cboe Digital’s launch of Bitcoin and Ether margin futures is a landmark event that bridges the gap between traditional finance and the evolving world of digital assets. This initiative is set to enhance trading efficiency, liquidity, and accessibility in the cryptocurrency market, marking a new chapter in the integration of digital currencies into the global financial ecosystem.

Binance Announces Delisting of Multiple Margin Trading Pairs Including ALICE, BAL, and BOND

Binance, the world’s leading digital asset exchange, has announced the removal of select margin trading pairs. The decision, slated to take effect on March 15, 2024, aligns with the exchange’s continuous efforts to optimize its offerings and improve user experience.

Binance Margin Trading Pairs Delisting

The official notice, released on March 6, 2024, details the discontinuation of certain cross and isolated margin trading pairs. Cross margin pairs to be delisted include ALICE/BTC, BAL/BTC, BOND/BTC, GNS/BTC, OAX/BTC, and SXP/BNB. Additionally, the isolated margin pairs facing removal are ALICE/BTC, BAL/BTC, BOND/BTC, CHESS/BTC, DEGO/BTC, GNS/BTC, HARD/BTC, OAX/BTC, ORN/BTC, and WING/BTC.

Key Timeline and Instructions for Users

Binance has provided a timeline for the delisting process to ensure a smooth transition for users. Isolated margin borrowing for the affected pairs will be suspended on March 8, 2024, at 06:00 (UTC). By March 15, 2024, at 06:00 (UTC), the exchange will proceed to close users’ positions, conduct an automatic settlement, and cancel all pending orders for the specified pairs.

Users are advised to proactively manage their positions, either by closing them or transferring funds to their Spot Wallets before the cessation of margin trading for these pairs to avoid potential losses. Binance has emphasized that it will not be responsible for any resulting losses.

Market Implications and User Sentiment

This move by Binance could reflect a strategic shift as the platform streamlines its services in response to market demands and risk management considerations. The delisting of margin trading pairs typically occurs due to low liquidity or trading volumes, regulatory considerations, or to enhance platform performance.

The cryptocurrency community’s reaction to the delisting has been mixed. Some traders express disappointment at losing leverage options for their preferred assets, while others appreciate the exchange’s efforts to maintain a robust and efficient trading environment.

Risk Warning and Future Outlook

Binance has reiterated the inherent risks associated with digital asset trading, highlighting price volatility and market uncertainty. The exchange continues to advise traders to make informed decisions, bearing in mind their financial situation and risk tolerance.

Looking ahead, Binance remains committed to providing a diverse range of trading options while upholding user safety and market integrity. As the crypto landscape evolves, the exchange is likely to continue adjusting its offerings to align with regulatory standards and user needs.

The delisting of margin trading pairs is a routine part of the exchange’s operational adjustments. It exemplifies the ever-changing nature of the cryptocurrency market and the need for platforms to adapt in order to maintain a balanced and orderly trading environment.