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Created page with "'''Btc.sx''' is a multinational company that engages in leveraged bitcoin trading and brokerage. The company offers a trading platform in digital currency..."

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'''Btc.sx''' is a multinational company that engages in leveraged [[bitcoin]] [[trade | trading]] and brokerage. The company offers a trading platform in [[digital currency]] derivatives such as [[margin trading]] to retail traders. It was founded in 2013 and is headquartered in London's Silicon Roundabout. ZDNet reports Btc.sx to be one of the first [[bitcoin]] companies that voided the necessity of all other currencies other than [[Bitcoin]].<ref>[http://www.zdnet.com/startup-opens-bitcoin-only-margin-trading-platform-7000019715/ ZDNet - Startup opens Bitcoin-only margin trading platform]</ref> The company was launched from Sydney, Australia, and is run by CEO Joseph Lee who co-founded the company alongside George Samman and Vincent Hoong.<ref>[https://btc.sx/about/team/ | accessdate=2014-08-21 Btc.sx - About the Btc.sx Team]</ref> Shortly after its launch, Lee moved operations to London favouring a dual incorporation model between Singapore and United Kingdom.<ref>[http://www.afr.com/p/business/enterprise/tech_start_ups_leave_oz_over_tax_YHf6ExICdaRAyopKKiZ2zI Australian Financial Review - Tech start-ups leave Oz over tax]</ref> The company also has operations in New York.

==Trading==
===Buying and selling===

Users of Btc.sx can open long and short positions using the proprietary trading platform. A corresponding buy and sell order is then placed out to market at a matching exchange with or without leverage. All positions opened will have a corresponding position placed out to market meaning that any profits gained or losses generated from market movements will be passed on directly to the client.

===Position Deposits===

Trading at Btc.sx is done on a pre-paid basis. In order to open a position, a deposit is taken which acts as collateral. This collateral will [[ACT|act]] as an equivalent of a margin call. This is the price at which a position will be automatically liquidated if losses accrue to the deposited amount. The margin call is shown as a stop price when the position is opened. A larger deposit will enable a bigger stop distance to be chosen. This can result in larger losses if the price moves against the desired direction.

===Features===
Leverage - 10:1, 5:1, 2:1 
Volatility Multiplier - 15% 
Execution Type - at best execution over ECN 
Minimum [[Trade]] Size - $5 equates to ~$50 [[Trade]] at 10:1 
Maximum [[Trade]] Size - $1000 equates to ~$10,000 [[Trade]] at 10:1<ref>[https://btc.sx/about/fees/ Btc.sx - Trading Fee Schedule]</ref>

==Fees==

===Transaction Fees===

====BTC====

Deposit - zero fees (minimum of 0.001 Btc) 
Withdrawal - zero fees (minimum of 0.001 Btc)

Funds are deposited once 3 [[confirmation|confirmations]] are recieved, this is a process that typically takes 30 minutes.

====USD====

Btc.sx does not accept fiat. All positions deposits are in [[Bitcoin]].

===Trade Fees===

Open and Close - 0.5% 
Gap Losses - zero

==Risk Matrix==

As well as magnifying trading gains, losses can similarly be multiplied. For beginners, it is widely reccomended that trading with a smaller amount of leverage will result in a lower risk whilst learning about the platform while trading. Despite its higher minimum deposit, potential losses will be minimised due to the unlikely nature that a stop limit will be reached.<ref>[https://support.btc.sx/hc/en-gb/articles/201070362-What-is-Leveraged-Trading- Btc.sx - What is Leveraged Trading?]</ref>

{| class="wikitable"
|-
! Leverage || Stop Distance || Risk || Return (Profit or Loss) || Minimum Deposit
|-
| 10:1 || Small || High || High || $5
|-
| 5:1 || Medium || Medium || Medium || $10
|-
| 2:1 || Large || Low || Low || $20
|}

==Reception==

Following the [[Mt. Gox]] collapse, Btc.sx announced a new exchange partnership with [[Bitstamp]] now placing its orders out to market.<ref>[https://btc.sx/news/normal-trading-resumed/ Btc.sx - Normal Trading Resumed]</ref> The trading platform announced in March 2014 the brokerage of over $40m in brokered transactions.<ref>[http://www.coindesk.com/btc-sx-resumes-trading-mt-gox-induced-freeze/ CoinDesk - Bitcoin Derivatives Platform BTC.SX Resumes Trading After Mt Gox-Induced Freeze]</ref>

==Capital investments==

In April 2014, Btc.sx recieved 500 bitcoins from the seed accelerator, [[SeedCoin]] in its first fund raising round.<ref>[http://www.coindesk.com/seedcoin-gives-btc-sx-500-bitcoins-funding/ CoinDesk - Trading Site BTC.SX Receives 500 Bitcoins in Seedcoin Funding Round]</ref> The company has recieved a total of US$0.45 million investment as a result of initial capital injections and its equity fundraising activities.<ref>[http://www.zdnet.com/startup-opens-bitcoin-only-margin-trading-platform-7000019715/ ZDNet - Startup opens Bitcoin-only margin trading platform]</ref>

==Service disruptions==

In February 2014 [[Mt. Gox]] was struck by a theft, it was the world's largest [[bitcoin]] exchange and at its peak handled 70% of all [[bitcoin]] trades.<ref>[http://blogs.wsj.com/briefly/2014/02/25/5-things-about-mt-goxs-crisis/ 5 things about Mt. Gox's crisis]</ref> The loss of 750,000 bitcoins (at the time worth over $350m) triggered immediate insolvency and caused its subsequent collapse.<ref>[http://www.theguardian.com/technology/2014/feb/25/bitcoin-exchange-mtgox-offline-amid-rumours-of-theft The Guardian - Bitcoin exchange MtGox offline amid rumours of theft]</ref> Following a trading suspension issued by Btc.sx, it was revealed that Btc.sx had partnered with [[Mt. Gox]] to offer its brokered trading service and suffered from undisclosed losses as a result of the collapse.<ref>[http://www.coindesk.com/bitcoin-derivatives-market-btc-sx-suspends-trading-amid-turmoil-partner-mt-gox/ CoinDesk - Bitcoin Derivatives Market Btc.sx Suspends Trading Amid Turmoil at Partner Mt. Gox]</ref>

==Regulation==

Btc.sx operates in a climate of regulatory uncertainty with no specific laws enforced to provide protection to its clients globally. The New York State Department of Financial Services who is overseen by Superintendent Benjamin Lawsky hopes to be the first regulatory body to provide a full framework for [[virtual currency]] businesses.<ref>[http://www.dfs.ny.gov/about/press2014/pr1407171.html New York State Department of Financial Services - NY DFS RELEASES PROPOSED BITLICENSE REGULATORY FRAMEWORK FOR VIRTUAL CURRENCY FIRMS]</ref> The DFS guidelines are percieved by many [[bitcoin]] companies to be overbearing with fierce opposition coming from Jeremy Allaire, CEO of [[bitcoin]] startup Circle.<ref>[http://www.coindesk.com/circle-bitlicense-block-new-york-customers/ CoinDesk - Circle: BitLicense Would Force Us to Block New York Customers]</ref>. With operations in New York, the BitLicense regulations will directly affect Btc.sx and similar [[bitcoin]] businesses.

==External links==
*[https://btc.sx Btc.sx - Bitcoin Trading]

==References==
<references />

[[Category:Trading]]

[[Category:Trading]]

[[Category:Trading]]
[[Category:Companies]]
[[Category:Platform]]

Btc.sx - Revision history

Admin: Created page with "'''Btc.sx''' is a multinational company that engages in leveraged bitcoin trading and brokerage. The company offers a trading platform in digital currency..."