HEXS: Bitcoin Margin Trading
Any traders out there looking to get into Margin Trading? Good news, a service is here! With lower barriers then most other margin trading services it should be very attractive to new traders. Today I’m here with HEXS talk about just that.
1. What sparked the idea of HEXS?
We’ve always believed that the financial markets have a high barrier to entry; financially speaking. When you consider the minimum account opening deposit required to open a equities trading account with a broker and/or even when you want to trade futures. The average person does not have discretionary funds laying around to participate in the market. This will naturally create information asymmetries and favoritism. If the average persons’ day-to-day lifestyle is dependent and susceptible to the prices of various commodities and assets– they
should be given an equal chance to vote on those prices.
HEXS.NET was made to specifically address this problem and designed to be a micro-exchange to allow very very small accounts to hedge their ‘dust’ exposure. Basically, an exchange free from asymmetries or barriers to entry. We give all economic agents, regardless of size, equal access to our central limit book.
2. What is Bitcoin Margin Trading?
Margin trading is a very basic concept. You deposit funds to your margin account and when you execute trades with other traders the profit and loss is transferred between margin accounts. If trader A buys a forward contract from trader B, if trader A make 10 satoshi, trader B will lose 10 satoshi. This transfer occurs in real-time as trades are executed. To ensure that a customer never loses more than what’s available in their margin account; we take preventative measures and algorithmically monitor every single account on every single trade.
3. There are many services that allow for margin trading. What makes yours different?
We are a technology focused company. Our primary goal is to quickly match buyers and sellers of Bitcoins and Bitcoin-settled contracts. We do not run our own bots to trade on the exchange, spoof volume or engage in activities which are a blatant conflict of interest.
4. Current Status?
There is not much server load as each server node was designed to handle 100,000 users concurrently. But we do have a little over 15 accounts; ranging from individuals to professionally registered trading advisory company. We never ran a ‘public’ beta; beta testing was done essentially by people we knew and some people who reached out to us on bitcointalk.
Development started on November 2013 and ended in March 2014; Tweaks to software was made from that time to the launch.
5. Future Development plans?
We have started working on version 2.0; which will support spot trading BTC/USD. We will be operating as a dual spot/forward market in the near future– we may allow options but no naked positions (ie.covered puts, covered calls)
6. Who is margin trading for?
Margin trading is for both hedgers and speculators. If you own Bitcoins and don’t necessarily want to sell them (but at the same time don’t want to lose money when it goes down)– you can enter into a synthetic short position. You can basically play the ups and downs without every selling your core position– and at the same time improve your dollar-cost average. Or if your a speculator who does not want to buy a full-Bitcoin– you can enter into a synthetic long position at a fraction of what it would cost to buy a full Bitcoin and experience the
same up/down exposure.
For more information: http://hexs.net/