Exciting news for cryptocurrency traders and investors! A major expansion in trading options is now live, providing new avenues for engaging with the XCH (Chia) market. This update introduces sophisticated financial products tailored for both active traders and those looking to earn on their holdings.
The newly launched services include leverage trading for XCH pairs, a savings product for earning yield on idle XCH, and a highly anticipated XCHUSDT perpetual contract. These tools are designed to offer greater flexibility, potential for enhanced returns, and advanced hedging strategies for market participants.
Comprehensive Guide to XCH Leverage Trading
Leverage trading allows you to amplify your market position by borrowing funds. This can magnify both potential profits and losses, making it a powerful tool for experienced traders.
For XCH, leverage trading is now available against two major trading pairs: XCH/USDT and XCH/BTC. This provides flexibility depending on whether you prefer to trade against a stablecoin or the leading cryptocurrency.
The specific margin requirements and position tiers are structured to manage risk effectively. These leverage gradients are essential to understand before opening a position to avoid automatic liquidation.
👉 Check the current leverage margin tiers
It is crucial to familiarize yourself with the platform’s risk management features, including stop-loss and take-profit orders, to protect your capital when using leverage.
Earning Passive Income with XCH Savings
The new savings product, often referred to as a "cryptocurrency savings account," enables you to put your idle XCH to work. By depositing your XCH into this service, you can earn interest over time.
The platform aggregates these deposits and lends them out to margin traders. The interest generated from these loans is then distributed back to you, the depositor. The specific annual percentage yield (APY) can fluctuate based on market demand for borrowing XCH.
Available supply and demand for the XCH savings product will vary. It is recommended to review the latest rates and limits directly on the platform's dedicated savings page before making a deposit.
This offers a compelling way to generate a return on assets you plan to hold long-term, without actively trading them.
In-Depth Look at the XCHUSDT Perpetual Contract
Perpetual contracts are a type of derivative that allow you to speculate on the future price of XCH without an expiration date. The newly launched XCHUSDT contract is settled in USDT.
Key Contract Specifications:
- Underlying Asset: XCH/USDT index.
- Settlement Currency: USDT.
- Contract Face Value: 0.01 XCH.
- Leverage: Ranges from 0.01x up to 75x.
- Trading Hours: 24/7, all year round.
A defining mechanism of perpetual contracts is the funding rate. This fee is periodically exchanged between long and short traders to ensure the contract's price closely tracks the underlying spot index price. The rate is calculated based on the difference between the contract's mark price and the spot price.
Trading is subject to standard limits and order types, including limit orders, market orders, and advanced conditional orders, consistent with other perpetual contracts on the exchange.
👉 Explore perpetual trading strategies
Frequently Asked Questions
What is the minimum amount I can trade with the XCH perpetual contract?
The contract face value is 0.01 XCH. This means each contract represents 0.01 XCH, allowing you to trade with a high degree of precision and manage risk effectively, even with smaller account sizes.
How does the funding rate work for the XCH perpetual contract?
The funding rate is a fee paid between traders to anchor the contract price to the spot price. If the rate is positive, long positions pay short positions. If negative, shorts pay longs. The rate is applied periodically, typically every eight hours.
Is my XCH safe in the savings product?
While savings products are generally considered low-risk, they are not immune to broader platform risks. It's important to understand the terms of service. Always ensure you are using a reputable and secure platform for any crypto activity.
Can I use leverage on both buying and selling XCH?
Yes, leverage trading allows you to open both long (buy) and short (sell) positions. This means you can potentially profit from both rising and falling markets, though leverage also amplifies potential losses in either direction.
What are the risks of trading with leverage?
The primary risk is liquidation. If the market moves against your leveraged position and your collateral value falls below a maintenance threshold, your position will be automatically closed to prevent further losses. It is vital to use risk management tools.
Do I need to undergo any verification to access these features?
Access to leverage and derivatives products typically requires completing a certain level of identity verification (KYC) on the platform. This is a standard compliance procedure for regulated services.