Kraken Pro has announced the addition of a new margin pair XRP/ETH, opening new avenues for traders. This article discusses the details of margin trading and the latest price changes in cryptocurrencies.
How Margin Trading Works
Margin trading allows traders to open larger positions using borrowed funds.
The new pair enables bets on XRP's rise against Ethereum. Traders can borrow funds to go long on XRP or earn from declines if they believe Ethereum will outperform the Ripple-linked token.
Kraken allows users to trade with up to 5x leverage on most pairs. However, for XRP/ETH, leverage is capped at 3x. Leverage limits vary due to liquidity and market volatility.
Price Changes Analysis of ETH and XRP
The ETH/XRP pair has dropped more than 14% from its peak of 0.00096 ETH recorded on July 22.
In the past week, ETH is up by 1.9%, while XRP has fallen by 10.6%.
XRP had been steadily gaining ground against ETH since November, reaching its year-to-date peak of 0.0114 ETH in April when ETH was experiencing a severe sell-off. However, the flagship altcoin managed to bounce back, aided by initiatives supporting corporate adoption led by Joseph Lubin.
Trading Prospects in 2023
Given the latest volatility and market changes, traders are questioning whether ETH can outperform XRP this year. Ongoing fluctuations in the market create uncertainty, and traders will need to closely monitor the price movements of both cryptocurrencies.
The new XRP/ETH pair on Kraken Pro highlights the growing interest in margin trading and the opportunities it presents. Traders should closely follow market developments to make informed decisions.
