DX.Exchange Launches Leveraged Crypto Tokens on Ethereum

Estonia-based digital asset exchange DX.Exchange has announced the launch of Smart Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term Tokens (SLTs), a new type of financial instrument that enables margin trading on the Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term. The announcement came in an official statement from the company.

The first SLTs to be listed on the exchange, dubbed “Turbo Tokens,” will be pair Tether Dollars (USDT) and DXCASH (DX.Exchange’s native coin) against Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Binance Token (BNB).

USDT pairs willed be leveraged 5x; DXCASH pairs offer 10x leverage.

https://t.co/gavrewTi9F Launches Smart Leverage Tokens to Allow Margin Trading on the Blockchain. Read the full story at https://t.co/qk3jRbE8kc pic.twitter.com/U6fMrn6Kr5

— DX.Exchange (@DXdotExchange) July 10, 2019

Traders Own Their Leverage, Face Fewer Risks

Unlike other kinds of margin trading, SLT traders do not borrow from the exchange; instead, they own their own leverage. Therefore, SLT traders do not incur overnight interest and do not face as much risk as in normal margin trading.

Turbo tokens also have a compounding mechanism that prevents the value of the asset from ever going to zero, which (according to the announcement) means that traders “never face more risk than the loss of their original investment.” The tokens can be stored in an ERC20 token wallet.

Daniel Skowronski CEO and Co-Founder of DX.Exchange, said that SLTs are a “game-changer:” “Exchanges are in a race to add leverage products, but they are still tied to the old school of margin trading with high risk and fees,” he explained.

As Finance Magnates reported earlier this year, DX.Exchange partnered with MPS MarketPlace Securities, Ltd, to be the first exchange to offer tokenized stocks of some of the largest publicly traded companies in the world.

“We have been waiting to go live with the most upgraded, inclusive, and modern version of our exchange platform,” Skowronski said at the time. “ The industry is very dynamic, and with new and exciting products such as digital stocks making their grand entrance, we’re confident that the hard work to perfect the trading experience was well worth the effort.”