Kraken unlocks margin trading for Ripple's coin; XRP/USD unser pressure
|- Traders can trade XRP and BCH on margin with Kraken.
- XRP/USD hovers below $0.3700.
A popular cryptocurrency exchange Kraken launched marginal trading for Bitcoin Cash and XRP.
"We have enabled margin trading for Bitcoin Cash (BCH) and Ripple (XRP)! The addition expands our margin offering to 8 assets," the company wrote in its Twitter account.
According to the press release, the customers will have access to the above-said cryptocurrencies against Bitcoin, USD and EUR with a tiny leverage: CH/XBT – 2x; BCH/USD – 2x, 3x; BCH/EUR – 2x, 3x, XRP/XBT – 2x, 3x; XRP/USD – 2x, 3x, 4x, 5x; XRP/EUR – 2x, 3x, 4x, 5x.
Apart from that, the exchange introduced the borrowing limits from 1 to 500 BCH and from 5 000 to 2.5 mln XRP, depending on an account verification level.
Until recently, Kraken allowed marginal trading only with BTC, Ethereum, Ethereum Classic, Augur, Monero and Tether.
The company specifically stressed that neither XRP nor BCH can be used as collateral, which means that the traders cannot open leveraged positions against the value of your BCH or XRP balances.
"For this reason, you should always maintain adequate balances of other collateral currencies to maintain your margin positions. Be extremely careful when trading collateral currencies for BCH or XRP when you have margin positions open since this will reduce your account equity and could possibly lead to the liquidation of your margin positions," they explained.
Meanwhile, XRP/USD is trading at $0.3640, down from the recent peak of $0.4607 reached on December 24. The coin has lost 20% of its value since that time, though it stays above $0.3330-70 support area. It means that the bulls may have another attempt at $0.3850 resistance created by DMA50.
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