Cryptocurrency exchange platform, Liquid, announced on April 2, 2019, the launch of its leveraged bitcoin (BTC) Contract-for-Difference (CFD) product called Liquid Infinity which allows leverage trades of up to 100x. However, due to Japanese cryptocurrency margin trading regulations, the product will not be available to traders in Japan.
Liquid Infinity Bitcoin CFD
Liquid, one of the largest cryptocurrency trading platforms in Japan has unveiled its leveraged bitcoin CFD product – Liquid Infinity. According to the press release, the product allows speculative trading on BTC price movements with the US Dollar (USD) or Japanese Yen (JPY) as the base currency pair.
Liquid Infinity also features a whopping maximum leverage of 100x. Thus, traders can vastly increase enjoy exposure from minimal trading capital outlay. On the flip side, such high margins create room for massive losses. Apart from 100x leverage positions, Liquid Infinity also provides access to cross-margin positions as a way of balancing the required margins for trades.
According to Mario Gomez Lozada, the Chief Product Officer at the company, the move towards bitcoin CFDs stems from the experiences gained in the cryptocurrency pro trading market. Commenting on the Liquid Infinity launch, Lozada opined:
“We saw a rising market demand for Bitcoin CFD products with appetite for higher leverage, which led to the development and launch of Liquid Infinity. Infinity will enable traders to amplify their risk-to-reward ratios with the existing risk management tools we have in place for our margin product, such as stop-loss orders and other advanced charting indicators.”
Data from CoinMarketCap shows that Liquid has a daily average trading volume of $362 million. More than 88 percent of this volume comes from its BTC/JPY trading pair. Liquid reportedly hosts the largest trading volume for the BTC/JPY trading pair across the entire cryptocurrency market.
Not Available to Traders in Japan
Despite being a subsidiary of Japanese fintech firm; Quoine, and regulated in Japan, Liquid’s bitcoin CFD product will not be available to traders in the country.
As previously reported by BTCManager, Japan’s Financial Services Agency (FSA) set maximum leverage of 4x on all cryptocurrency margin trading. For Japanese regulators, the move was an important aspect of their goal to safeguard investors from risky asset classes.
With that said, Liquid looks primed to join the rapidly expanding group of companies like Bit4x offering bitcoin margin trading via CFDs. Back in 2018, London-based forex broker; Forex Capital Markets (FXCM) also launched its own bitcoin CFD.