Margin Loans

Margin Loans

  • Bitcoin exchanges allow traders to purchase Bitcoin and other Cryptocurrencies using leverage.
  • Other users of the exchange provide the capital to the leveraged traders for a market-based interest rate.
  • No credit losses have occurred, since borrowers’ collateral is automatically sold if margin call triggered.
  • Interest is credited daily, interest rates sometimes spike and averages 10-15% annualized.