Trade Crypto With up to 5x Leverage: Gemini Margin Trading Is Here

Gemini Margin Trading is live.

For the first time, Gemini customers in eligible jurisdictions can enter leverage positions of up to 5x for the following trading pairs.

• BTC/USD
• ETH/USD
• SOL/USD
• XRP/USD

As part of the initial launch, Gemini users can open long leveraged positions in the listed pairs, meaning the position benefits if the market price increases. But we’ll soon have an expanded group of pairs to choose from and introduce short leveraged positions, which are designed to increase if the market price declines.

A quick review of the in’s and outs of margin trading:

What Is Crypto Margin Trading?

Margin trading allows customers to borrow funds from an exchange to trade assets. In crypto markets, this means controlling a larger position than what the initial capital would allow. The bottom line: Borrowed funds amplify trade size. The ratio between the amount borrowed and the deposit is known as leverage.

What are the Advantages of Margin Trading?

Margin trading offers several advantages, particularly for traders looking to maximize their returns, but it also significantly increases risk. Leverage increases the size of potential gains if the market moves in a customer’s favor. Using leverage, traders can control a larger position than they would with their own capital alone. This can lead to substantial gains if the market moves in their favor.

What Is a Margin Call?

Margin calls are one of the biggest risks in margin trading. If the value of a position falls below a certain threshold, the exchange will issue a margin call, requiring the customer to deposit more funds to maintain the position. If they’re unable to meet the margin call, the position may be liquidated, resulting in the loss of the initial investment, and in certain circumstances losses may exceed the initial collateral.

Are Customers Charged Interest?

When trading on margin, customers are required to pay interest on borrowed funds. Interest accrues over time and can reduce returns or increase losses.

Go Where Dollars Won’t!
Team Gemini

*Margin trading involves a high level of risk and is not suitable for all customers. Leveraged trading can result in rapid losses, including losses that exceed a customer’s initial collateral. Customers should carefully review Gemini’s Margin Trading Terms and Risk Disclosures before trading on margin. *