Litecoin Leverage Trading
Overbit allows you to magnify your Litecoin exposure to the market with up to 20X leverage.
Litecoin Margin Trading
Litecoin is considered the “light version” of Bitcoin because it is a direct fork of the Bitcoin Core code with some modifications to make it a faster and cheaper alternative to transact with. Litecoin was created by Charlie Lee, a computer scientist and graduate of the Massachusetts Institute of Technology. Lee had worked in Google and cryptocurrency exchange Coinbase as Director of Engineering in 2013, two years after creating Litecoin.
Litecoin has more supply than Bitcoin, with its total supply capped at 84 million, making it cheaper and easier to acquire and to use for transactions. Per speed, the Bitcoin network confirms transactions at the pace of nine minutes per transaction, while the Litecoin network, which was established to offer superior transaction speed, ultimately confirms transactions after 2.5 minutes. By this, Litecoin is at least 3X faster than its predecessor. Litecoin uses fundamentally different cryptographic algorithms from Bitcoin. While Bitcoin uses the SHA-256 algorithm, Litecoin uses a newer algorithm called Scrypt.
Benefits of Trading Litecoin
After Bitcoin, Litecoin is one of the earliest known cryptocurrencies with more than $11 billion market cap. It consistently ranked as a top ten cryptocurrency until newer entrants like Polkadot, Cardano, Tether, and others came into the scene to assert their dominance.
One of the advantages Litecoin has is that it is an early cryptocurrency traded almost on any exchange that exists. Its popularity made it a top choice among the biggest futures trading platforms. Overbit offers LTC leverage trading, allowing traders to speculate big on the LTC price.
Make profits when Litecoin goes up or down
Go long or go short on Litecoin when the price is rising or falling using the Overbit platform. Profit from trading both ways without taking delivery of LTC.
Trading Litecoin with leverage
Overbit allows you to trade Litecoin with leverage. With leverage you can get a lot more exposure to the Litecoin price movement than the amount you deposit. This also means you can trade Litecoin using your Bitcoin or USDT without taking delivery of the LTC.
As an example, let’s say the current LTC price is 200 USD and you expect the price to reach 230 USD quite soon. You wish to buy or go long on 50 Litecoins which are worth 10,000 USD. However, you use 20X leverage so you’d need a lot less as your risk capital. To work this out we calculate 1/20 * 50 * 200 = 500 USD.
Therefore 500 USD is the amount you are risking to speculate on Litecoin price with a positIon worth 10,000 USD.
If the Litecoin price moved up to 230 USD and you closed the trade at a profit, you would make 30 * 50 = 1,500 USD profit. However, if the price of Litecoin moved down by 10 USD, you would lose your entire 500 USD.
Similarly if you wished to speculate on Litecoin decreasing in value to 170 USD, you could apply the same calculation to short 50 Litecoins at 20X leverage.
1/20 * 50 * 200 = 500 USD is your initial capital required.
If Litecoin does indeed go down to 170 USD then you stand to make a profit of 30 * 50 = 1,500 USD. If the price of Litecoin moved up by 10 USD, you would be liquidated and lose the entire 500 USD.
You can get a more accurate calculation of the margin requirement and your liquidation price in Bitcoin or USDT – on the deal ticket window of the Overbit trader.
How Litecoin leverage works
With an Litecoin leveraged trade, you can get up to 20X the exposure of the capital you deposit.
Why trade Litecoin on Overbit
Overbit is a world-class exchange with a deep and liquid order book from our multiple global liquidity partners. Our traders enjoy fair market prices consolidated from the world’s top exchanges and are free from price manipulation. This means no single trader can manipulate prices on Overbit with large positions. At Overbit, you can trade Litecoin using your Bitcoin or USDT without the need of taking delivery of assets.
We provide a wide range of features in leverage trading. On Overbit, you can trade Litecoin with up to 20X leverage. However, in order to limit your risk exposure, we employ advanced risk management measures. We allow you to open each position with your own margin preference (isolated margin or cross margin).
Overbit recognizes and rewards community efforts by running one of the best affiliate programs from any crypto exchange. Users get rewarded in BTC or USDT for referring friends. This is unarguably the most rewarding cryptocurrency affiliate program in the world. As a way to incentivize the continued use of our exchange, we operate a tiered reward program. Traders get rewarded in Tier Points (TP) for trading. Once you reach 1,000 TP, you can swap for BTC or USDT.
You never have to worry about the security of your funds on our exchange as we employ military-grade security to ensure customers’ funds are always safe. We segregate user funds to ensure they are protected, and stored in multi-signature cold wallets. If you ever need our support team, we offer 24/7 live chat support to all users.