Bitfinex has announced today the launch of margin trading on Tether Gold (XAUT).
We have launched Margin Trading for @TetherGold!
XAU₮ pairs can now be traded with an initial equity of 20% and a maximum leverage of 5x.
Furthermore, the maximum leverage for BTC/USD has been increased from 3.3x to 5x.
— Bitfinex (@bitfinex) January 30, 2020
Starting at 12:00 UTC today, several trading pairs are available on the exchange with leverage up to 5x, in particular, the one with US dollar (XAUT/USD), with Tether dollar (XAUT/USDT) and the one with bitcoin (XAUT/BTC).
These pairs can be traded with an initial capital of 20% and a maximum leverage of 5x, while the maximum leverage for the bitcoin dollar pair (BTC/USD) has been increased from 3.3x to 5x.
This allows traders to borrow funds to increase leverage, offering the possibility of making more profits compared to traditional trading.
However, for the same reason, the risk is also higher, in particular, due to the strong volatility of digital assets.
The CTO of Bitfinex, Paolo Ardoino, said:
“The launch of margin trading on Tether Gold will allow more advanced trading strategies, enabling a more sophisticated means of hedging exposure and managing risk. Raising our leverage from 3.3x to 5x is a noteworthy development, and is also timely given growing interest in gold and other safe haven assets amid the recent turmoil that we’ve seen in equity markets”.
The launch of Tether Gold took place only a week ago, but trading volumes are already significant, hence it is not surprising that Bitfinex has already introduced the first noteworthy addition to this market.
Every single XAUT token represents one troy ounce of a London Good Delivery gold bar. This allows customers to own gold without the inconvenience of storing physical gold.
The bars are physically stored in a security vault in Switzerland with high-security measures.