The cryptocurrency exchange will launch a margin trading service on October 31.
According to the platform, this new functionality will allow traders to "borrow crypto valued multiplied original principal for more transaction possibilities." KuCoin writes:
"By selling the lending crypto, users can short their positions to get profit. Margin trading, compared to traditional trading, has the potential for higher profit but, due to price fluctuations and high liquidity, also faces higher transaction risk."
The exchange has not disclosed any information about how much leverage it plans to offer or regarding the loan conditions. However, the crypto trading platform has said the owners of the platform's native token (KCS) will enjoy a 20% discount on transaction fees.
KuCoin launched in July KuMEX, its own crypto derivatives platform, where traders can exchange bitcoin contracts with a 20x leverage.
Binance, the world's largest crypto exchange by adjusted trading volume, announced last week it has increased the leverage limit for bitcoin futures from 20x to 125x.
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