Trade crypto with leverage
Established in 2013 Independent Reserve is Australia’s trusted cryptocurrency exchange.
Leveraged trading allows you to buy and sell crypto on Independent Reserve using funds advanced to you. This gives you greater market exposure and can amplify your trading results.
How to start leveraged trading
1. Read and study
First, read the terms and conditions and study the information on our leveraged trading blog to understand the risks and mechanisms associated with using leverage. You will need to complete the suitability test before you are allowed to begin trading with leverage.
Read the blog
2. Take the test
Log in to take the suitability test. You will find instructions for how to navigate and take the test when you log in. You must pass with a score of at least 80% to begin leveraged trading on Independent Reserve.
Log in to take the test
3. Start trading
After you have completed and passed the suitability test, you can start trading with leverage. Log in for access to the leveraged trading page. From here, you will have access to open, manage and close your leveraged trades.
Create your account
How leveraged trading works
Leveraged trading involves trading with funds that exceed your initial capital using funds advanced to you. This allows you to trade a larger position than would be possible compared to regular trading. Using leverage magnifies your exposure to market volatility which can result in greater gains and losses.
In order to receive advanced funds from Independent Reserve, you will need to provide collateral in the form of fiat or crypto.
Once you have provided the required collateral, we will advance funds to you, in either fiat or crypto, for you to trade with.
Create your account Log in to start
| Fee | Fee amount | Timing of fee payment |
|---|---|---|
| Trading fee | Starting at 0.5%, down to 0.02% with trade volume discounts. View trading fees. | Applied when position open and close trades are executed. |
| Position open fee | Free | N/A |
| Position close fee | Free | N/A |
| Mandatory liquidation fee | 1% of the total loan amount at closing or partially liquidating the position. | Applied when we close or partially close an open position because it has reached a mandatory liquidation level. |
| Interest fee | 0.1% per day, accrued every 10 seconds. | Applied when your position is closed. |
Trading fee
Fee amount
Starting at 0.5%, down to 0.02% with trade volume discounts. View trading fees.
Timing of fee payment
Applied when position open and close trades are executed.
Position open fee
Fee amount
Free
Timing of fee payment
N/A
Position close fee
Fee amount
Free
Timing of fee payment
N/A
Mandatory liquidation fee
Fee amount
1% of the total loan amount at closing or partially liquidating the position.
Timing of fee payment
Applied when we close or partially close an open position because it has reached a mandatory liquidation level.
Interest fee
Fee amount
0.1% per day, accrued every 10 seconds.
Timing of fee payment
Applied when your position is closed.
To better understand how Independent Reserve Leveraged Trading works, view ourIntroduction to Leveraged Trading blog and ourLeveraged Trading Terms and Conditions.
Frequently asked questions
What does it mean to trade with leverage?
Trading with leverage is when you use advanced funds to increase the size of a trade and potentially generate larger profits. This means that with a smaller amount of capital, a trader can control a larger position in the market, magnifying the potential for both gains and losses. It is important to understand that leverage can increase risk as well as reward and traders must be careful to manage their leveraged crypto trades appropriately.
What crypto can I trade with leverage on Independent Reserve?
The trading pairs we offer leveraged trading for are: BTC/AUD, ETH/AUD, XRP/AUD, SOL/AUD and USDT/AUD.
Are there fees for leveraged trading on Independent Reserve?
There are no fees for opening and closing a leveraged position.
There is a daily interest charge of 0.1% on advanced funds.
There is a fee if your trade reaches mandatory liquidation status.
Please see theLeveraged Trading Terms and Conditionsfor details of all fees payable for using the Leveraged Trading product.
What is an example of leveraged trading?
An example of trading with 2x leverage on Bitcoin would be if a trader buys $10,000 worth of Bitcoin using $5,000 of their own capital and $5,000 of funds advanced by Independent Reserve.
If the price of Bitcoin increases by 10%, the trader's position is worth $11,000, resulting in a profit of $1,000. However, if the price of Bitcoin decreases by 10%, the trader's position is worth $9,000, resulting in a loss of $1,000. In contrast, opening a position using only your $5,000 would result in a profit or loss of $500.
In both cases, the trader's gains and losses are magnified by the use of leverage.
What are the main risks of leveraged trading?
One of the main risks of trading with leverage is that it can lead to greater losses if the trade goes against you. This is because you are essentially using advanced funds to trade with, so if the value of your position drops, you will be required to provide additional funds to cover the loss and maintain a healthy margin, or your position may be closed automatically.
Overall, leveraged trading is high-risk and can lead to mandatory liquidation, which ultimately results in the loss of some or all of your funds. That’s why it's important to understand the risks associated with leveraged trading, such as the potential for losses exceeding the amount of capital invested. You should only use leverage if you are comfortable with the magnified potential for losses. It's also helpful to consider the use of stop-loss orders and other risk management tools to help limit any potential losses.
Is leveraged trading good for beginners?
No. As a new trader you should definitely not use leverage to trade cryptocurrency.
Leveraged trading can be dangerous for those who do not have the necessary knowledge or experience. While using leverage can help traders potentially increase their returns, it can also magnify the potential for losses and put their capital at risk.
It is important for beginners to understand the risks of trading with leverage and approach it carefully. To start with you should only use small amounts of leverage and gradually increase it as you gain experience and confidence. It is also important to always do your own research and consult with a financial professional before making any investment decisions.
What is the difference between leveraged trading and regular trading?
In leveraged trading, a trader is advanced funds to trade with, which allows them to open a larger position than would be possible using only their own capital. The trader is required to maintain a minimum amount of equity in their account, known as the margin. This is contributed as collateral to cover any potential losses.
In crypto, regular trading is when a trader buys and sells cryptocurrency using their own capital without being advanced any additional funds. This means that the trader's potential gains and losses are limited to the amount of capital invested. Regular trading does not involve the use of leverage and therefore does not require the trader to maintain a minimum amount of capital in their account.
Both leverage trading and regular trading have their own advantages and disadvantages, and the right approach for a particular trader will depend on their individual circ*mstances and goals. It is important to understand the potential risks and rewards of each approach before deciding which one to use.
