Only a day ago, OKCoin intoduced a new ‘margin management’ system to its Futures trading platform, which was launched very recently too.This new addition to the platform will allow multiple margin balances for any trader’s varying positions.This innovative Margin management replaces the platform’s previous system. The previous system only allowed a single margin balance for all positions of a trader.
This basically meant that a trader’s losses and gains in one position could affect the others.A representative from the Chinese exchange, OKCoin said that as a leading crypto-futures trading, the company has invested time to refine its platform with hopes to accommodate the market’s most sophisticated traders.They kept this aim in mind and worked on the new margin management system for the last month.This new system helps to isolate risks. It is very common that one trader has more than one position opened simultaneously.
Some advanced users prefer to manage the amount of risk that is bearable for each individual position.The representative shared that some traders thought that the older one-size-fits-all margin system lacked flexibility.The pioneering company came up with a solution to use a system known as fixed margin. With this system, traders’ positions are classified into 4 types based on contract lengths.
The contracts length could be weekly, biweekly, monthly or quarterly.Each of these categories of contracts is designated with a fixed amount of margin. The trader can add to or remove margins later based on his needs.The benefit of the margin management system is that the impact will be contained even if one position is bad. The risks are effectively isolated in this new system.This new system allows traders to have more control and change margins as they will.
However, if anyone prefers the older version, they can use the original single-balance option too. It is available for use.Like its close competitors, OKCoin has expanded its features the last few months. Their intention is to appeal to a professional trading market.
They also aim to have an international user base.Zane Tackett, manager of international operations, OKCoin, shared in an interview that the new features have been contributory to the company’s expansion.He informed that at first their Futures user base was mainly Chinese, but after promoting in the international market, they witnessed their international customer base grow at a fast pace.In fact, the growth was faster than their Chinese user base.The Chinese exchange re-launched its margin trading system in this year’s June. This was soon after a new version English language version went live on the website.
The re-launch was basically designed as an answer to People’s Bank of China’s advice to shrink the risk of speculative activity after the site had stopped an earlier margin lending and trading system back in May.In August 2014, OkCoin included the Futures trading platform. It is said that this solved some of the crypto currency’s price volatility concerns by ‘locking in’ the price of bitcoin at a fixed level.
