KuCoin announced on Friday that its users and traders on its platform will soon have access to margin trading (leverage).

The new service will be launched on October 31, which will allow users of the KuCoin platform to inflate their trading portfolios by borrowing money from the platform.

However, details regarding the new leverage were not known at the time of this entry.

What appeared only was the announcement of a 20% discount on the occasion of the launch of the new service.

There are actually many large trading platforms that offer margin trading at high rates, including:

Binance, Kraken, Hobby Pro, Bitmax…

The new option that the platform will provide to traders will allow to borrow cryptocurrencies by depositing their own money as collateral, for example:

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If you are trading with $500 margin trading option with 2x leverage

You are actually trading $1000 without having to incur the expense directly.

Margin trading is a popular way to get inflated gains from market volatility, especially when used at the right time, when the profit is very tempting compared to traditional trading.

This enables traders with limited funds to go ahead with more sophisticated and active trading strategies.

A downside is also amplified as much as the positive

As margin trading can cause the loss of all funds deposited in the platform

Especially in the absence of an adequate risk management strategy.

As we mentioned, the platform allocated a 20% discount in all margin trading operations as long as the trading fees are paid using the “KCS” currency.

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Read also:

Binance adds margin trading for NEO and XMR

Explanation of Margin Trading and Leverage on Binance Platform (Long/Short Positions)

Comparison of futures contracts and margin trading in the world of crypto and digital currencies