Things to Consider while Building a Margin Trading Exchange

Cryptocurrencies continue to be the hot talk of the year 2020. Impressively, crypto traders continue to trade assets worth billions of dollars every day. With that happening, the crypto exchanges have actually hit an absolute gold mine. According to a study, the top 20 cryptocurrency exchange software across the globe average about $1 million profit per day. However, hundreds of exchanges are competing against each other and every passing day the number of exchanges is going up.

Exchanges have been building their profits year upon year. Unfortunately, there is a certain percentage of exchanges that disappear or collapse every year.  Cryptowisser, the exchange aggregator site recently announced its Crypto exchange graveyard list. According to the statistics, almost 75 crypto exchanges collapsed in 2020. As the crypto market continues to show impressive growth, the exchanges in the industry are being challenged by the competition.  

To cut through the competitive clutter, new exchanges need to offer something unique to the traders. One of the aspects that is really catching up fast is a crypto exchange with margin trading.  

Whether you are trying to build your own bitcoin exchange website or app, introducing margin trading can always help you attract more traders. This is because margin trading gives traders access to a greater relative value of the trading position and thus delivers a large number of profits to the traders.

 Spoiler Alert: Margin trading exchanges can prove to be complex and risky. However, the right features can prevent that from happening.

Here are the features you must consider while margin trading cryptocurrency exchange development:

 1) Smooth, reliable, and fast trading interface

Trading cryptocurrencies is still a daunting task for most of the world’s population. The traders need exchange interfaces that are smooth, reliable, and offer a fast trading experience.

Additionally, a crypto exchange with margin trading should serve both novice and seasoned crypto traders. Thus, it is important for the exchange to be intuitive and offer a wide array of advanced trading tools at the same time.

 2) State-of-art matching Engine

Cryptocurrencies are highly volatile assets. The traders who indulge in leverage trading want to maximize profits. Thus, they want their trades to be executed within seconds.  Hence, the speed of a matching engine integrated into the margin trading exchange plays a crucial role.

 3) Stop loss orders to avoid losses

A stop-loss order is a risk management tool and a very important feature of a margin trading platform. Some margin trading exchanges offer stop-loss orders, guaranteed stop-loss orders, or trailing stops to make sure the traders are exposed to minimum risk.

 4) Sleek, responsive, and fully customizable charting interface

 Charting is one tool that can help traders refine their trading edge. By doing so, they can minimize risk and maximize their profits. Beginners and professional traders require a different type of charting interface. But for both of them, the interface must be sleek, responsive, and fully customizable to suit their preference. Using these interfaces, the traders must be able to create clean charts.

For advanced traders, the interface must allow drawing lines, arrows, add text, rectangles, Fibonacci retracement, and more. Additional functionalities like multiple chart support where traders can display a single asset across multiple time frames can also help.

5) Margin trading calculator

This is a very trending feature of a crypto exchange with margin trading. It helps traders make more informed decisions. They can quickly determine the potential profit and loss of an order based on the amount of leverage.

 To sum it up

Crypto margin trading offers enhanced returns, trading flexibility, increased cash dividends, and other advantages to the traders. This is because they allow them to expand their trading position up to multiple times with small deposit margins.

With the current economic turmoil, there is no better time to roll-out a crypto margin trading exchange. Right now, the traders are eager to maximize their profits with minimum capital. To achieve this, they need exchanges that come with exclusive features like risk-management strategies, stop loss, and take profit.

If you are planning to introduce your cryptocurrency margin trading platform in the market, Antier Solutions can be your development partner.

Connect with our subject matter experts to know how we can take the association further.