OKEx exchanges opens margin trading for XRP and LTC
This past Tuesday, the OKEx cryptocurrency exchange announced that it was adding margin trading for two currencies to its platform. In a Twitter post, the company said that margin trading would be available for Bitcoin (BTC)/Ripple (XRP) and BTC/Litecoin (LTC). Trading was opened the morning of the same day, according to the announcement.
Margin trading typically can provide greater returns on investments; however, they come with greater risks, as well. Margin trades do not use an investor's assets; instead, the investor places buy and sell orders using loans that are furnished from brokers or stocks are purchased that can increase the investor's buying power.
Because of the risks, OKEx cautioned that investors need to perform complete due diligence before deciding to participate in margin trading. While there's a chance of earning better returns, there's also a risk of losing just as much.
The timing of the XRP addition was significant to the coin, as well as Ripple. It came on the heels of the announcement that Ripple's xRapid cross-border payments platform has become more efficient and continues to see greater adoption by a number of institutions. Besides already in use by a number of banks, the SBI Group and SendFriend, a cross-border money transfer platform that is funded by MIT Media Labs, the MasterCard Foundation, Barclays and others.
LTC has continued to stay strong, in spite of negative reactions by the blockchain development community. It gained significant traction as an offshoot of Bitcoin that could offer lower mining times and fees, as well as faster transaction times.