Leveraged trading is a method of trading using funds provided by a third party. Leveraged trading allows traders to access a more substantial amount of capital than regular spot trading, enabling them to capitalize on their positions. This method of expanding the volume of trades for profit makes leveraged trading popular in low volatility markets, especially the international foreign exchange and interest rate markets. Leveraged trading is also used in the stock, commodity and cryptocurrency markets.
In traditional financial markets, investment brokers usually provide borrowed funds. However, in cryptocurrency trading, funds are usually provided by other traders or cryptocurrency exchanges who earn interest based on the market demand for leveraged funds.
BiyaPay’s first version of leveraged trading in this launch is only enabling the full position leveraged trading feature for the time being.