You can now benefit from high market volatility with Bitpanda Leverage. It’s the smart way to gain more exposure to crypto price movements.
Here’s how it works
Bitpanda Leverage gives you access to over 10 leverage positions, with the option to go short or long on BTC, ETH and other top crypto.
Going 1x Short means the performance of your position is inverse of the underlying crypto-assets price change in EUR. For example, if the Bitcoin (BTC) price in EUR drops by 10%, your Bitcoin/EUR 1x Short position increases by 10%.
Going 2x Long means that the performance of your leveraged position is double the underlying crypto-assets price change in EUR - if the asset goes up by 10%, you gain up to 20%.
We currently offer long options for the following crypto assets:
Bitcoin/EUR 1x Short & Bitcoin/EUR 2x Long
Ethereum/EUR 1x Short & Ethereum/EUR 2x Long
Cardano/EUR 2x Long
Litecoin/EUR 2x Long
Ripple/EUR 2x Long
Polkadot/EUR 2x Long
Chainlink/EUR 2x Long
Polygon/EUR 2x Long
TRON/EUR 2x Long
Doge/EUR 2x Long
Solana/EUR 2x Long
What is Bitpanda Leverage?
Bitpanda Leverage is structured as CFD, or Contract for Differences. Our CFDs enable investors to potentially profit from EUR price movements of a specified crypto asset without owning the underlying asset.
Who can use it?
You! As a valued Bitpanda customer, we are giving you exclusive access to Bitpanda Leverage. We decided to reward community members with exclusive early access to the product.
We all know that investing with leverage has a lot of benefits, but there is also risk involved. As an educated investor, we recommend you to make yourself familiar with the product in this document, the terms of the general contract provisions for Short and for Long and our FAQ below. Should you have questions beyond that, don’t hesitate to reach out.
A deeper look
Bitpanda Leverage is denominated in EUR. Long leverage means you can open a long crypto position with twice* the notional value of your initial capital, the performance of which is double* the underlying crypto asset. While short leverage means the performance of your position is the inverse of the underlying crypto asset. For example, if the Bitcoin price in EUR goes up 10%, the price of Bitcoin/EUR 1x Short will decrease 10%*, and the price of Bitcoin/EUR 2x Long will go up to 20%*. Put simply, this means you can open a short position on an underlying crypto asset if you think the crypto price could go down or a long position if you expect prices to rise.
Please note that the underlying crypto assets are quoted in EUR. If your selected default currency is different to EUR, your final return will also depend on the exchange rate between EUR and your chosen currency.
What are the risks of CFD leverage trading and how can the risks be mitigated?
CFDs can provide access to an underlying asset at a lower cost and offer the option to go long or short, but they also come with significant risk of losses. Trading CFDs on leverage means you can participate in the losses/gains of an underlying asset for a fraction of that underlying asset's value as initial investment. The use of leverage magnifies the size of the trade, which means that your potential gain and your potential loss are equally magnified. You should closely monitor all the open positions to manage the risk of large losses.
First, you should always do your own research and not invest money in Bitpanda Leverage that you cannot afford to lose.
Bitpanda Leverage contains a margin close out control with a trigger of 50% of the initial margin. This means that a position will be automatically closed if a 50% loss has been incurred. A negative balance control ensures that potential losses of your position are capped at the original amount you invested into Bitpanda Leverage.
How to assess your currency risk?
If the default currency you have chosen in your wallet settings is different to EUR, your returns will be calculated in EUR and then converted to your chosen currency using a live exchange rate. This means that you are exposed to the risk of changes in the exchange rate between EUR and your chosen currency.
For example, if you invest 100 USD and the EUR/USD exchange rate increases by 10%, your returns in USD will be 10% higher. However, if the EUR/USD exchange rate decreases by 10%, your returns in USD will be 10% lower.
You should carefully consider the risks of exchange rate volatility before investing in this product.
What is re-leveraging?
In regular leverage trading, you borrow from the exchange to trade with, and if the price drops too much, they can take your collateral and sell it to cover the loss. This is a liquidation. With Bitpanda Leverage, we re-leverage to maintain the target leverage ratio of 1.9x (for long positions) on your behalf - at least once per day - to ensure you do not lose more than you invested. Also, we will never ask you to provide any additional collateral.
Which fees apply?
- Commission fees: We don’t charge for leverage trading
- Trading fees: The buy fee for leverage positions is 0%. A return fee of 1% is charged when closing leverage positions
- Overnight fees: A daily fee of 0.1% on the leveraged amount will be charged
Any more questions?
Don’t hesitate to reach out if you have further questions.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.5% of retail client accounts lose money when trading in CFDs. You should consider whether you can understand how CFDs work and whether you can afford to take the high risk of losing your money.
L-Token-Long allows you to invest in increasing EUR market prices of selected crypto-assets by entering into a contract for differences (CFDs) with Bitpanda GmbH. L-Token-Short allows you to invest in expected falling EUR market prices of selected crypto-assets by entering into CFDs. Section 5 of the L-Token Investor Information Document (available at bitpanda.com) provides you with more information on the risks associated with Bitpanda Leverage.
Bitpanda Leverage is brought to you by Bitpanda Financial Services GmbH (licensed and regulated by the Financial Market Authority, Austria).
The present does not constitute investment advice. Past performance is not an indication of future results. Terms and conditions apply.