Bitfinex (bitfinex.com) is a major cryptocurrency platform, the third largest in terms of turnover. IFINEX BVI, a Hong Kong-based company is the operator of the platform. Bitfinex offers a margin trading option, which is hard to find anywhere else. Traders take cryptocurrencies or USD from users who act as liquidity providers. The fee, charged for the use of funds, is a reward for the investors.
There are 3 types of accounts:
- 1) Exchange. Basic trading account for trading without leverage;
- 2) Margin Trade. Funds placed in this account serve as a guarantee in trading operations. Trading is not what these accounts are used for. All trading operations are carried out with funds borrowed from investors. A trader cannot withdraw investors' funds, they can only be used for trading. Any trade operation must be a closed counter transaction.
- 3) Total Return SWAP. Funds, stored in an investor's account, can be lent to traders (for at least 2 days, and 30 days at most). The fee for using borrowed funds is deducted from the trader's margin account and credited to the liquidity provider's account 1 time per day. Bitfinex charges 15% of this payment. Traders have the option of returning borrowed funds whenever they want.
Bitfinex (bitfinex.com) is a major cryptocurrency platform, the third largest in terms of turnover. IFINEX BVI, a Hong Kong-based company is the operator of the platform. Bitfinex offers a margin trading option, which is hard to find anywhere else. Traders take cryptocurrencies or USD from users who act as liquidity providers. The fee, charged for the use of funds, is a reward for the investors.
There are 3 types of accounts:
- 1) Exchange. Basic trading account for trading without leverage;
- 2) Margin Trade. Funds placed in this account serve as a guarantee in trading operations. Trading is not what these accounts are used for. All trading operations are carried out with funds borrowed from investors. A trader cannot withdraw investors' funds, they can only be used for trading. Any trade operation must be a closed counter transaction.
- 3) Total Return SWAP. Funds, stored in an investor's account, can be lent to traders (for at least 2 days, and 30 days at most). The fee for using borrowed funds is deducted from the trader's margin account and credited to the liquidity provider's account 1 time per day. Bitfinex charges 15% of this payment. Traders have the option of returning borrowed funds whenever they want.
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