EOS (EOS) has a high liquidity already, but that is set to get an extra boost with OKEx offering margin trading as it attracts new and different types of investors.
OKEx is one of the largest trading platforms in Asia and is quickly growing into an important platform for crypto trading. The exchange will now offer EOS traders the opportunity to exploit the high liquidity, boosting its accessibility in the market.
The exchange will offer the service in the EOS/USDT and EOS/BTC pairs, and trading is scheduled to start today.
Cryptocurrency trading is risky, and the exchange made a point to remind all EOS traders of the significant risk they expose themselves to by engaging in crypto trading. The biggest risk comes from the highly volatile nature of digital assets.
It can be highly profitable when the market looks up and things go an investor’s way. However, just as likely, a trader can lose all their invested capital in a very short time. Thus OKEx warned potential traders:
“You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.”
What is margin trading?
Margin trading can be a great way to make some profit in the market but has risks too. Think of margin trading as a tool to invest more money than you have via a short-term loan to be repaid with interest.
Having a margin account allows traders to place orders with borrowed funds thereby increasing their leverage or buying power. Traders can increase their earnings if the prices go up. However, it can lead to loses if prices crash, leading to forced liquidation.
The OKEx spot market currently generates the most trading volume for the EOS market, where over 16 percent of its trading done in the EOS/USDT pair.
EOS continues to see strong trading volume
The EOS/USDT trading pair has expanded over recent months to take up about 42 percent of the trading volume. EOS initially had most of its volume traded against Ethereum’s (ETH). However, that has now shifted to exchange platforms that offer crypto-to-crypto trading with USDT.
EOS remains one of the top cryptocurrencies by market capitalization. However, its price has taken a beating in recent days, much in line with the rest of the market.
BTC price declines continue to affect the altcoin market, including EOS. Bitcoin has dropped by over 12 percent in the last 24 hours to sink below $6,500. The top ten altcoins have also declined by between 12 percent and 22 percent.
EOS prices have tanked in the last 24 hours, among the biggest losers with 22 percent. EOS/USD has dropped from about $6.48 to a low of $5.05 at the time of writing.
The coin is also struggling against Bitcoin (BTC). It has declined by over 11 percent in the last 24 hours and currently trades at 0.00078336 against BTC.
In terms of trading volume, the average daily volume has increased in recent days and hit $1 billion on September 5. It currently has an intraday trading volume of about $906 million and could surpass the $1 billion mark on the OKEx news.
The EOS market may be experiencing a price downturn, but on the flip side, that could be beneficial to the platform. One of the challenges facing the EOS platform has been the issue of skyrocketing RAM prices.
Developers buy RAM using EOS whose changing prices have been a cause for hiked prices for the resource. Exorbitant prices had threatened to derail developers, but lower EOS prices have seen RAM prices also fall.
Now developers can buy RAM at 0.12 EOS per kilobyte and it’s a bit less expensive for developers to onboard Dapp users.