What is Cross Margin in Currency Trading (Cross Margin Pairs)

What is Cross Margin in currency trading? Cross Margin in the digital asset mar

What is Cross Margin in Currency Trading (Cross Margin Pairs)

What is Cross Margin in currency trading? Cross Margin in the digital asset market is defined based on the actual performance of different currencies. For example, Bitcoin and Ethereum can be hedged with different leverage ratios (e.g., BTC/USDT, ETH/USDT), and the leverage ratio can be increased or shorted for more variety. The leverage ratio depends on the price changes of each currency in the spot market, as shown in the graph below:

The leverage ratio refers to the situation where the fund rate is increased or decreased through counter-positioning when the price of a certain currency rises by 50% within a specific period of time. For example, when a currency increases to a certain amount, a counter-market gaming method is used to reduce fund rate expenses. If loss occurs and affects the fund rate, it may lead to systemic risks. Therefore, leveraging is used to reduce the risk of user investment leverage.

Cross Margin Pairs

According to data monitored by third-party big data rating agency RatingToken, on July 22, 2018, there were a total of 2 prime ministers, 39 economists, and 27 virtual currency experts globally. Among them, the highest trading volume for cross margin pairs was ETH/USDT, the highest transaction volume was BCH/USDT, and the lowest transaction volume was BSV/BTC.

To view the ranking of more cross margin pairs, please click on the original link.

For example, OKEx, Huobi Pro, BitMEX, Gate.io, and Bybit currently support the following cross margin pairs.

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