In-depth analysis of spot leveraged products on mainstream exchanges

Spot leverage is almost a must for every transaction type. Since the spot leverage price of each currency is consistent and linked to the spot price, and the liquidity is connected, when the spot liquidity of a certain currency reaches a certain standard, it is a matter of course to open the spot leverage.

In contrast, contract trading is another price system. The link between the contract price and the spot price is mainly maintained by arbitrageurs, price expectations on the delivery date, and fee rates.

Therefore, for exchanges, spot leverage is a product type that is naturally derived when liquidity is mature.

For users, leveraged trading meets the following requirements:

1.  The need to enlarge the income of small currencies.

Due to the small market value of small currencies, the same funds enter, and the increase of small currencies is greater. Therefore, in the bull market, many investors choose small currencies to invest in and pursue greater returns, and spot leverage can further amplify this return. .

Therefore, for many investors, choosing a platform for spot leveraged trading is more important to whether the platform supports their favorite small currencies and the number of supported currencies.

Zhou Qiang, President of the Supreme People's Court: We must accelerate the deep integration of cutting-edge technologies such as blockchain and trial enforcement work: On December 30, Zhou Qiang, President of the Supreme People's Court, conducted research in Hainan. Zhou Qiang emphasized the need to conscientiously implement the spirit of General Secretary Xi Jinping's important speech on strengthening intellectual property protection, increase judicial protection of intellectual property rights for key core technologies, key areas, and emerging industries, and continue to optimize the legal environment for scientific and technological innovation. Promote the deep integration of blockchain and other cutting-edge technologies with trial enforcement work, promote the modernization of the trial system and trial capabilities, and continuously improve the ability and level of judicial services. (People's Court Daily) [2021/1/4 16:23:24]

2. The need to control the leverage ratio.

The available leverage in spot leverage is fixed. Compared with the leverage of 1-125 times in contract trading, the fixed leverage is more conducive to investors' management of their own leverage and positions, and to avoid risks caused by mental fluctuations highly speculative behavior.

Therefore, although the contract is the more mainstream trading tool in the current market, leverage is also indispensable as a supplement to spot trading.

Asproex (Apollo) and DW Bar reached an in-depth cooperation: According to official news, on November 3, 2020, Asproex (Apollo) and DW Bar officially reached an in-depth cooperation. This strong alliance between the two parties aims to provide platform users with a wider range of Moon consumption scenarios. It is reported that DW also specially launched the exclusive Apollo No. 1 wine, and users can enjoy exclusive discounts when paying directly with Moon.

DW2100 is a direct platform for industry resources and a high-end business private club jointly created by Digital Works, TODO BLOCK, and Bianhua Capital. It is also a professional cocktail, whiskey, cigar bar and a holy place for online celebrity check-in.

Asproex (Apollo), as an offshore bank holding licensed trading platform, covers CTO (Corporate Token Offering) corporate token listing, contract documentary, ETT index token, digital mining, Digital Bank sector and holds legal licenses in 5 countries , is committed to providing one-stop digital listing services for small, medium and micro enterprises around the world. [2020/11/3 11:31:49]

This article will compare the leveraged trading situation of each trading platform in terms of product design, trading experience such as depth and price difference, and risk control.

Deputy Director of the State-owned Assets Supervision and Administration Commission of the State-owned Assets Supervision and Administration Commission: The current blockchain and other technologies are accelerating their evolution and deeply integrating into various fields of society: On March 4, the "Learning Times" published a headline on the front page of the article "State-owned enterprises must do to promote digitalization". The Vanguard of Intelligent Upgrade". The article pointed out that accelerating digital and intelligent upgrading is a major measure to seize the historical opportunities of technological and industrial revolutions. At present, cloud computing, big data, blockchain, artificial intelligence, mobile Internet and other basic technologies and cutting-edge hot technologies are accelerating iterative evolution, deeply integrated into various fields of society, and constantly bursting with innovation vitality. Informatization has increasingly become the forerunner of economic and social development. The digital economy is becoming the core element of global industrial transformation and economic growth. All major countries in the world regard digital and intelligent upgrading as a strategic direction to seek new advantages in international competition. [2020/3/5]

1.  Product design comparison

Details can reflect the degree of care in product design, and it also truly reflects whether the exchange is really starting from the user's perspective when designing products.

Voice | Hu Henghua, Member of the Standing Committee of the Hunan Provincial Party Committee: Vigorously promote the deep integration of new technologies such as blockchain and supercomputing with the transportation industry: According to news on December 6, Hu Henghua, member of the Standing Committee of the Hunan Provincial Party Committee, emphasized when investigating transportation work that vigorously promote big data, the Internet , artificial intelligence, block chain, supercomputing and other new technologies are deeply integrated with the transportation industry, and a cross-level, cross-system, cross-department, and cross-business urban comprehensive traffic big data integration and sharing platform is built to speed up the construction of smart roads and make traffic more convenient. More "smart" (Changsha Evening News) [2019/12/6]

First of all, on the spot leverage entry, Huobi and MXC Matcha chose to put "Margin Trading" directly in the navigation bar at the top of the page, and OKEx and Gate also chose to put the entry in the secondary navigation of the "Trade" button in the navigation bar .

In contrast, Binance's spot leverage entry is hidden and not an independent transaction page, but placed together with the spot. At the top of the spot transaction pending order window, you can choose spot or leveraged trading. The entrance is hidden deep, which is slightly unfriendly to some novice users.

Secondly, in terms of color matching, the main color of Huobi and MXC Matcha is relatively dark, because the dark color is relatively acceptable Relieve visual fatigue and help protect eyesight during long-term stare at the disk. Most other exchanges have opted for bright white tones.

Gene source code chain and the domestic genetic testing company Starship Gene reached an in-depth strategic cooperation: Recently, the Singapore Gene Source Chain Foundation and the well-known domestic DTC genetic testing service company Starship Gene reached an in-depth strategic cooperation. The two parties will jointly promote blockchain technology in Applications in the field of health big data storage. Starship Gene provides technical support such as gene sequencing technology, data analysis, and local system research and development for the gene source code chain, and at the same time helps the landing and promotion of the ecosystem. The Gene source code chain team is composed of cross-border geeks and doctoral teams, including EOS open source developers, senior hackers, bioinformatics doctors, artificial intelligence doctors, etc. Nobel laureate Brian David Josephson served as project advisor. Gene has currently received institutional investment from Node Capital, Genesis Capital, and Double Flower Capital. [2018/5/23]

Third, in the setting of the guide, Huobi and MXC matcha clearly marked the leverage guidance process in the form of "1234" under the K-line view, guiding users to "borrow" and "repay" and other operations. Easy for users to see.

Fourth, the view layout of MXC Matcha and Binance chooses to place the market information on the left side. In fact, people's reading habit is to read from left to right, and placing the handicap information on the left will help users check the current market situation at the first time and make trading choices according to the situation.

Generally speaking, in terms of product design, MXC Matcha is relatively special and thoughtful.

 2. Comparison of depth and order spread

Citing TokenInsight, liquidity refers to the ease of buying or selling quickly without affecting price stability. Spread and depth are the core indicators of liquidity.

The smaller the price difference between buying one and selling one, the easier it is for users to place orders, and the price loss of market orders is also smaller. The depth determines the amount of funds that can be accommodated, and also determines the impact of large orders on market fluctuations.

In this session, we only compare the depth and price difference of Huobi, MXC Matcha and Binance BTC spot leverage.

At around 17:00 on May 13th, Beijing time, we intercepted 10 times of bitcoin price difference information on the Huobi, Binance, and MXC Matcha exchanges. The results are shown in the figure:

The time period we selected is the sideways stage of Bitcoin, and the performance of the price difference is relatively representative. It can be seen that Huobi has the best spread performance, with an average spread of 0.636 USD, and MXC Matcha and Binance have the same performance.

In addition, we also intercepted the depth of Huobi, MXC Matcha and Binance BTC spot leveraged trading pairs. The following pictures were intercepted when 2 decimal places were combined and 1 decimal place was combined.

It can be seen that when 2 decimal places are merged, the depth of Huobi and MXC Matcha is better. When it is 1 decimal place, Huobi Depth is more dominant.

3. Risk control comparison

The risk rate determines the user's liquidation price. The following is the calculation formula of the risk rate of each platform:

Huobi: total assets (principal + loan amount) / (loan amount + outstanding interest) * 100%

MXC Matcha: total assets (principal + loan amount) / (loan amount + outstanding interest) * 100%

Binance: total asset value / (total loan value + total accrued interest value)

OKEx: Replace the risk rate with the margin rate. Margin rate = original "risk rate" - 1 = (total assets of the current currency pair margin account - loan - interest) / loan * 100%

Gate: [(Total Assets in Denomination Currency - Unpaid Interest in Denomination Currency)/Latest Transaction Price + (Total Assets in Transaction Currency - Outstanding Interest in Transaction Currency)]/(Total Assets in Denomination Currency/Latest Transaction Price + Borrowing Assets in Transaction Currency)* 100%

In fact, the risk rate calculation methods of major platforms are similar, and there is no essential difference.

In addition, in addition to comparing the risk rate calculation methods, we also need to pay attention to the overall risk control of the platform. From the point of view of public narcissism, compared with Huobi and MXC Matcha, the overall risk control has more advantages. Both have maintained a record of zero coins since their establishment. A blockchain security company has reached an in-depth cooperation.

To sum up, since contract trading only supports a few mainstream currencies, margin trading has become an important choice for users to amplify the income of small currencies.

After comparing spot leveraged products on multiple platforms, we found that Huobi and MXC Matcha’s leveraged trading entrances and operation prompts are more eye-catching and easy to use, and the dark-colored design is more helpful for users to keep an eye on the market for a long time.

In terms of depth and market spread, we compared the performance of Huobi, MXC Matcha and Binance. The performance of the three projects Huobi is better, and MXC Matcha and Binance are on par. In terms of risk control, the calculation methods of the risk rate of each platform are similar. In contrast, Huobi and MXC matcha’s 0-coin loss basis is more reassuring.

Tags：

Ethereum