Interview with CTO CoinDeal Derivatives:
1. What is the difference between CoinDeal spot and CoinDeal Derivatives Market?
Cuba: On the spot one currency (or token) is exchanged for another. On CoinDeal Derivatives, however, you trade on contracts – e.g. BTC / PLN – you bet on whether the price will go up or down. The derivatives market can earn both declines and increases.
2. What will the maximum leverage be?
Cuba: The maximum leverage is 50x. However, we recommend starting from the lower ones. For example on 2x.
3. How to understand the 50x leverage?
Cuba: A leverage (levar) of 50x tells us that by using your own deposit amount, e.g. $ 10, you can trade for $ 500. Leverage helps in trading, but you have to be careful because it increases profits but also losses.
4. What pairs will be available at CoinDeal Derivatives?
Cuba: At the beginning of BTC / PLN, BTC / USD and soon BTC / EUR, BTC / KRW.
5. What will be the registration process for CoinDeal Derivatives? Will KYC be required?
Cuba: The registration process will be very simple – CoinDeal will not require any additional procedures for existing customers. New customers will be required to provide their email and confirm it.
6. What distinguishes CoinDeal Derivatives from other derivative exchanges?
Cuba: CoinDeal as the only exchange will offer a BTC / PLN contract with the possibility of playing with a leverage of up to 50x.
In addition, we provide a very convenient combination for the customer of full advantages and exchanges on the spot market with the possibility of trading on the derivative market (all in one).
CoinDeal Derivatives also has its utility token BBD. Having a BBD Token, the user has access to discounts on trading fees, greater opportunities to earn in the affiliate program, the opportunity to participate in frequent competitions, where you can win very attractive prizes.
7. Who is Maker and who is Taker?
Cuba: Maker – a trader who gives a pending order in a book (liquidity provider)
Taker – a trader whose order is immediately carried out in the order book (collects liquidity) ..
8. What is cross margin and what is isolated margin?
Cuba: Cross margin uses the user’s entire margin as the balance available on the platform. This means that the margin is shared between all user positions. By using the cross margin, the user has more funds in their account to avoid liquidation when the appropriate leverage is selected. Cross margin mode has better resistance to potential losses.
Isolated margin is a margin deposit assigned to a specific position. If the allocated margin falls below the unrealized PNL, the position will be liquidated, but this will not affect other funds. Isolated margin provides better flexibility due to the possibility of sharing user funds, but is associated with a greater risk of liquidation during market turbulence.
9. What margin calculation method does CoinDeal Derivatives use – isolated margin or cross margin?
Cuba: CD Derivatives uses cross margin.