What is leveraged trading?

BiyaPay
Published on 2024-06-21 Updated on 2024-11-04

Leveraged trading is a method of trading using funds provided by a third party. Compared to regular spot trading, leveraged trading allows traders to obtain more substantial funds, enabling them to leverage their positions. This method of expanding trading volume for profit has made leveraged trading popular in low-volatility markets, especially international foreign exchange and interest rate markets. Leveraged trading is also used in the stock, commodity, and cryptocurrency markets.

In traditional Financial Marekt, investment brokers usually provide lending funds. However, in cryptocurrency trading, funds are usually provided by other traders or cryptocurrency exchanges, who earn interest based on market demand for leveraged funds.

The first version of leveraged trading launched by BiyaPay only allows full-position leveraged trading for the time being.