Crypto Exchange Bitfinex Adds Margin Trading On Tether Gold

Announcements, News | January 31, 2020 By:

Cryptocurrency exchange Bitfinex has added margin trading for Tether Gold (XAU₮), enabling traders to execute more advanced strategies on the metal in a digital form.

Founded in 2012, Bitfinex is a digital asset trading platform offering services for digital token traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an over the counter (OTC) market and financed trading for a wide selection of digital assets.

Tether Gold is a digital asset offered by TG Commodities Limited. One XAU₮ token represents one troy fine ounce of gold on a London Good Delivery gold bar. XAU₮ allows token holders to enjoy ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.

In a press release, Bitfinex said that margin trading, which enables traders to borrow funds to increase leverage, for Tether Gold with US dollar (XAU₮/USD), tether (XAU₮/USD₮), and bitcoin (XAU₮/BTC) began on January 30. These pairs can 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.

“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,” said Paolo Ardoino, CTO at Bitfinex. “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.”