Bexplus is a crypto exchange that has been around since late 2017, and it offers crypto traders leverage of up to 100x on select token pairs. If you are new to leveraged trading, Bexplus offers some neat features that could help you get started.
Aside from the good leveraged trading options that Bexplus has available to its clients, it will also pay interest on the funds that are deposited in a margin account.
There are more exchanges out there that offer leveraged trading, and Bexplus has some features that make it a viable option for traders who want to gain leveraged exposure to the crypto markets.
Let’s take a look at what Bexplus has on offer, and how it allows its clients to trade with up to 100 times the amount they have on deposit.
Bexplus is Made for Trading
Bexplus is designed for the crypto trader who wants to use leverage. If you aren’t familiar with the idea of leverage, it is simple. Instead of trading one token for another one directly, the exchange will allow you to use the tokens you have on deposit to trade with much higher amounts of value.
For example, if you have 0.5 BTC, but you want to trade 5 BTC, Bexplus would allow you to use 10 times the amount of value that is in your account to make the trade. Unlike a regular token exchange, a leveraged exchange uses an agreement that is similar to a futures contract, or CFD, to create these leveraged trades.
Once you decide to (or are forced to) exit the trade, the profits or losses will be credited to your account. The upside to leveraged trading is that any profits that your positions generate will be much higher, but the downside is that losses can spiral out of control.
Bexplus has created safeguards for traders that allow the use of leverage, but keep them safe from unforeseen consequences. This is helpful from the standpoint of usability, even for traders that have loads of experience.
How Does Bexplus Work?
One of the best parts about Bexplus is how simple the platform is to use. All you have to do is deposit a sufficient amount of BTC with the exchange, and you will be able to start trading.
There aren’t a lot of KYC hurdles to jump over with Bexplus, as it is a crypto-only exchange. This means that if you want to use it, you will have to turn your fiat into BTC at another exchange, and then send the BTC to Bexplus.
Once you have opened an account and funded it, you will be able to trade in the following tokens.
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- EOS (EOS)
- Ripple (XRP)
Bexplus uses Tether (USDT) as the other side of the pair for all of the above-listed tokens, which basically means that their clients are trading the tokens against a cash position in US dollars. Every trade will incur a charge when it is opened, which varies based on the token pair.
The transaction fee for a BTCUSDT trade is listed at 0.075% on Bexplus’ website.
There are no options to trade the tokens against each other (BTC/ETH for example), and like any futures contract, users will have to pay a daily fee of 0.1% of the contract’s value if a position is open at midnight (UTC) to cover the margin loan.
The fee structure at Bexplus is basically in-line with the rest of the leveraged crypto trading options out there and is far better than the options one would find at most traditional CFD brokers. As long as a position isn’t held past 00:00 UTC, traders only have to pay the transaction fee.
Bexplus Trading Platform
Much like the rest of Bexplus’ operation, their trading platform is easy to understand and use.
The platform itself is simple and offers a clear view of the tokens that can be traded, with interactive charts so you can see how they have performed over time. Both long and short trades are allowed. If you want to know more about what that means, there is a section about trading below.
In addition to market and limit orders (again, these are covered below), Bexplus has some good features that can keep traders from getting into trouble with margin trading.
Taking Care of Risk
Any trader who uses leverage needs to learn how to manage risk.
The reason for this is simple: if you use borrowed money, you can lose a lot more than the value of your account. Luckily, Bexplus has integrated a forced liquidation feature into its trading platform that will close out any trade that has eliminated the value of a margin account.
For example, if you used .5 BTC (the entire value of your account) to open up a long trade worth 10 BTC, you would be using leverage of 20x. This means that if the market falls by 5%, your margin would be gone. Bexplus would then close the position so that your account doesn’t fall into a negative balance.
In fact, Bexplus offers a no negative balance guarantee, so you never have to worry about owing the exchange anything on a trade that went wrong.
Some Trading Basics
Trading on Bexplus is good because they include more advanced trading features like limit orders, which may not be a part of the basic trading tools on other exchanges. If you want to learn a little bit more about how these tools work, here is a short guide to get you started.
Buying or selling a token pair with a market order is just about as simple as it gets. Your trade will be executed at the price level for the token pair according to Bexplus, which is derived from five of the biggest crypto exchanges globally.
The good part of using a market order is that the amount of tokens that you want to buy or sell will be obtained (or sold short), but the price can move before the order is executed. If you want to buy or sell a token pair at a specific price, you will want to get familiar with limit orders.
A limit order allows you to create an order for a specific amount of a token pair, which are to be either bought or sold at a specific price. If the market hits the price level that you specify, the order will be executed.
There is no way that you would buy or sell the token pair at a price other than the one you specify with limit orders, but the amount of exposure you gain may not be as much as you ordered. There is only so much liquidity in the market, and if the market turns the other way, your order may not be filled completely.
Of course, if the market doesn’t go to the price level you specify in the limit order, you will gain no exposure whatsoever. You can also use stop-loss orders, as well as take profit orders.
Once you enter a trade, you will be able to set a level where the trade will be closed. This level can be higher or lower than the opening price and will either protect your profits (take profit), or ensure that your losses don’t explode (stop loss).
Long and Short Trades
In the financial markets, the terms ‘long’ and ‘short’ are commonly used for buying and selling, respectively. Most people are familiar with buying something (like a stock or token), but selling isn’t as common with retail investors.
A short sale means that you hope to profit from a fall in the price of something. The amount that you will profit is the difference between where you sell the token, and where you buy it back (cover your short).
Short sales are thought to be riskier, as a token or stock could theoretically rise in price forever (unlimited losses). A limit order can protect you from this, so don’t be scared to go short. With leveraged trading limit orders are important to use with any trade, as a big move in either direction can wipe out the margin.
Is Bexplus the Right Exchange for You?
Bexplus has some great features for traders who want to be able to use leverage with the largest tokens in the world. The platform is simple to use and will let just about anyone with BTC use up to 100x leverage on a straightforward trading platform.
If you want to trade in additional token pairs, there are other exchanges that will allow you to do so on a leveraged, and cash basis. Bexplus makes sense for traders who want easy access to leverage but isn’t right for investors who want to trade in minor tokens on an unleveraged basis.
Overall Bexplus is a good exchange to consider if you are looking to trade major tokens with leverage, or want to earn interest on your trading balance when you aren’t using it somewhere else.