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BTCC Announces Launch of Pro Exchange Allowing 20x Margin Trading
• Bitcoin MagazinePro Exchange is a bitcoin margin trading tool that will allow traders to exercise 20x leverage on spot trading.
Unlike BTCC's regular spot exchange, which might be useful for those who are looking to buy or sell one or two bitcoin, Bobby Lee, CEO of BTCC, explained that this product is better suited for more experienced traders.
"If you want to buy a lot of bitcoin, it's a quick way to get a lot really fast," Lee explained in an interview with Bitcoin Magazine . Lee explained that miners looking to hedge against price decline, those looking for arbitrage opportunities, and "people who are professional and directional traders would all find the tool useful."
"We're the first exchange to launch a radically new trading platform," Lee said. "We're going to reinvent the game and not wait to be marginalized. We're going to disrupt ourselves with this. This is big. This kind of trading will be adopted by other companies, I guarantee you."
Margin trading is effectively borrowing bitcoin to make trades with it, returning it once an individual's trade is completed. If a user had 1 BTC and the price appreciated by $10 before selling, their profit would be $10. However, if someone borrowed bitcoin at 20x margin, they'd have 20 bitcoin to trade with. If the price went up by $10, they'd have effectively made $200 profit. Users effectively get more buying power than they physically have to trade with.


