Cryptocurrency exchange Nexo has introduced its leverage product called Nexo Booster. Beginning January 17, customers can start accessing the new service on Nexo’s mobile trading app. According to the information obtained by CoinQuora, Nexo Booster will offer some features similar to margin trading, although it is expected to be simpler and more sophisticated. The new offering has a limit of up to $250,000 per single boost transaction.
Nexo Booster offers a variety of advantages for its users. It has a profit projection feature that allows traders to monitor the effect of the market’s future moves in real time. Traders can also enjoy a 0.5% cashback on the full amount of the transaction. What is more, users who avail of the new service can borrow up to three times more than their initial balance.
Nexo provided the leverage service to help its over 3 million users – especially the long-term retail traders – have better exposure to the crypto market. The exchange also assured its users that the newest offering has a loan-to-value (LTV) ratio of up to 70%.
As for the reason behind its decision to allow leverage of 3x, the exchange told CoinQuora that it aims to limit the risks for its users. Aside from the aforementioned service, Nexo is known for its flagship Crypto Credit Lines. Specifically, the exchange allows users to borrow crypto starting at an annual percentage rate of 0%.
Leverage is a type of trading in which traders can place a trade position more than his or her available balance alone. This is possible through borrowed funds.
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Source: Cryptocurrency - investing.com
