11.1 BITPoint offers a service that allows trading using leverage. This is called leveraged Trading or Margin Trading. This service allows an increase that leverages the trading margin; is the process by which a Trader or merchant borrows money from BITPoint in order to buy or sell more crypto-assets or cryptocurrencies that the Trader is not able to pay at the time of the request. This trading margin therefore functions in some way as a short-term loan and allows the trader to increase his crypto-assets and the purchasing power he has. In addition, this can provide the opportunity to create much larger gains compared to what the Traders involved in the Market Trading would be able to generate normally.
Margin Trading or leveraged transactions confer a greater profit potential than traditional trade, but also higher risks. Users who do not have a complete understanding of the operation of the leveraged transactions and the associated risk should not use the service. Users who do not wish to use the service can disable the functionality in the users’ settings.
11.2 To become eligible to participate in leveraged transactions, you must consider the following considerations:
- These transactions can be executed on our website www.bitpoint.com.pe and our APP BIT Point LITE.
- The cost of requesting or opening an account to trade with Leveraged Transactions or leveraged transactions will depend on the position in which it is opened.
|Leveraged Trading – Features|
|Trading Tool||Online Trading Tool with web response, BITPoint ADVANCE|
|Type of Trading||Leveraged Trading|
|How to use it||You can perform margin trading with your regular BITPoint account. The configuration for the Leveraged Trading can be adjusted in the user’s configuration.|
|Type of orders||Market order, limit order, order of Stop Loss|
|Order unit||0.01 BTC|
|Schedules to Do Leveraged Trading||24 hours a day and 365 days a year (except maintenance hours: 2:00 am-2: 10 am / all days) (Panama time)|
|Limit per order||Market Order & Stop Loss Order: 30 BTC Maximum Per Order (Limit): 100 BTC|
|Order Expiration||Good Till Cancel (GTC): La orden es válida hasta que se ejecuta o cancela.|
|Leverage (X)||x2 (Up to 2 times the value), x5 (Up to 5 times the Value), x10 (Up to 10 times the value), x25 (Up to 25 times the Value)|
|Settlement method||Selected Settlement: You select which position you would like to liquidate and settle it.|
|Cross Order||It is possible to have long and short positions simultaneously.|
|Exchange||“When a position is transferred to the next day, regardless of whether it is a purchase or sale, a swap fee is charged based on the USD-based value in your BTC position. The swap rate is as follows:
BTC / USD: Long 0.15% Short 0.15%
|Maximum amount per position||500BTC|
|Loss Court (Forced Execution)||Executed when the maintenance index of the margin falls below 100%, the loss cut will be executed when the maintenance index of the margin falls below 100%. The customer positions with the highest loss will close until the margin maintenance ratio is recovered at 100%. Depending on the situation of the customer’s account, all positions could be closed. In situations where the price changes dramatically, you may suffer losses greater than your margin, even if the loss cut is executed.|
|Alert||In the event that the Maintenance Margin Index falls below 120%, an alert will appear on the customer management screen and you will be notified by email.|
|Slippage (Sudden Drop In The Price)||The “Slippage” is a difference between the executed price and the assigned price (or the displayed price) in Limit Orders, Loss Limitation Orders and Market Orders. After the sudden rise or fall of the market and / or the Internet connectivity of the client, a “Slippage” may occur. To avoid a large difference in the price assigned, you can select a price range according to the time you place the order. It will not run more or less, than the price range you have selected.|
11.3 Leveraged Transactions Commissions
There are two types of fees for leveraged transactions:
- Position opening fee
- Daily position maintenance fee (Swap).
11.3.1 The fee to open a margin position is 0.15% of the total USD dollar value of the position. This value is only charged when a new position is opened.
11.3.2 When a position is moved the next day (a swap), a daily position maintenance fee of 0.15% of the total USD value of the position will be charged for each day the position is moved.
11.4 Types of Leverage
11.4.1 The customer chooses to leverage 2 times the value, 5 times the value, 10 times the value or 25 times the value of the current and actual balance of his account.
If the market price fluctuates continuously, even if the stop Loss rule is applied, there may be a loss that exceeds the amount of the margin inserted.
11.5 Cancellation of leveraged transactions:
11.5.1 When liquidating the holding position, the user must specify the position to be settled and the balance of his account.
11.5.2 When the margin of the maintenance rate falls below 100%, requests for new orders are canceled sequentially from newly executed orders (including small values) with a large margin restriction until the margin maintenance rate reaches 100% .
11.5.3 If the margin maintenance rate is not recovered 100% in the previous procedure, from the position held by the client to the position with a large loss of valuation, the settlement of the open position will be made until the maintenance rate of the margin reach 100%
11.5.4 Alert. When the margin rate falls below 120%, we will post the alert information in “Important Notice” on the top page of your account and we will send an alert email to your registered email address. “