SNX/USD: Trade SNX to US Dollar
SNX/USD is a currency pair where SNX value is reflected in USD, meaning it shows how many US Dollars are needed for purchasing 1 SNX token. Traders may check the current SNX price in USD and its history of changes using the SNX/USD chart on the CEX.IO Broker.
What is SNX and why trade SNX/USD?
Synthetix is a decentralized protocol for the issuance of synthetic assets on the Ethereum blockchain. The Synthetix platform allows users to mint, trade, and hold a wide range of derivatives — including commodities, fiat currencies, cryptocurrencies, indices, and stocks. It means the project brings non-blockchain-based assets to the crypto ecosystem, making DeFi space more mature. SNX token is used for staking and collateralizing synthetic assets, as well as to pay trading fees on the platform.
Synthetix is one of the most successful DeFi projects in terms of total value locked in the protocol in the derivatives segment. Like many altcoins, SNX price in USD is highly volatile, so traders may enter this market to benefit from price fluctuations.
How does SNX/USD trading on CEX.IO Broker work?
CEX.IO Broker offers an option to trade SNX/USD with margin. Margin trading gives you the ability to enter into positions that are larger than your account balance. For this purpose, traders use a specific multiplier called leverage.
CEX.IO Broker supports a broad range of leverage sizes — from 2x to 100x. So if you set up 2x leverage, you can double equity available for trading and potential profit. At the same time, leverage also increases the potential risks if the price moves in the direction the trader didn’t expect. Note that all trading operations on CEX.IO Broker include the leverage that traders set up when creating a trading account.
Margin trading is available on CEX.IO Broker using derivatives called Contacts for Difference (CFDs). CFD allows you to get potential profit from asset price change without needing to own the base currency. It means you can trade SNX/USD with no SNX tokens on your balance. Instead, you use your balance reflected in account currency to get access to all available markets on CEX.IO Broker.
To benefit from price change with CFD, traders open so-called Long and Short positions. Opening and holding a Long position is a bullish view, meaning the trader expects that the price should go upward. And if it really does, the trader can profit from it. If you have bearish sentiment, then you can open a Short position for taking advantage of downward price movement. For fixing financial results for a particular trade, you need to close the position.
How do I start trading SNX/USD with leverage?
If you want to get access to the SNX/USD market with CEX.IO Broker, then you need to:
- become a CEX.IO Broker user — you can register or use your CEX.IO account credentials to login on CEX.IO Broker;
- create a trading account selecting suitable leverage and account base currency or use already existing trading account;
- deposit funds with account currency (BTC, ETH, or USDT);
- choose SNX/USD market in the CEX.IO Broker terminal.
If you want to change your leverage or account currency, you can create a new trading account. In total, you can manage up to 10 trading accounts with various account currencies and leverage size setups.
Before starting trading SNX/USD on a Live account, you can practice using a demo account on CEX.IO Broker. It’s free for use and can be helpful for newcomers in margin trading or those who want to make some test trades and get acquainted with the platform.
What order types are available for SNX/USD trading on CEX.IO Broker?
CEX.IO Broker provides users a set of four major order types that can be used for trading Long and Short — market, limit, stop, and one-cancels-the-other (OCO).
With a Market order, you can buy/sell an asset at the best available price on the market. Order fills instantly, so can’t be canceled.
Both Limit and Stop orders allow you to set the price you would like to buy/sell the asset with. The difference between Limit and Stop is that the first one executes when the price reaches the specified level or better, while the second one executes only at the exact price.
OCO order is a combination of Limit and Stop orders. They both can be placed at the same time but the only one can be completed. When one of the orders is filled, the other one cancels automatically.
CEX.IO Broker also offers protection orders like Stop Loss and Take Profit that traders may set additionally on the open position. These orders close out if the market price reaches a specified price, which may represent a loss or profit. Stop Loss and Take Profit are used to minimize risks from unexpected price movements, ease following the strategy and make trading less time-consuming. Protection orders can be modified or discarded until the position is closed.
What trading instruments can help benefit from SNX/USD trading?
With CEX.IO Broker, you can use professional risk management instruments, including isolated and cross margin. And unlike many other margin trading platforms where you need to choose one of these features, at CEX.IO Broker you can benefit from both of them. Isolated margin implies the multi-account option available on CEX.IO Broker with each account being independent in terms of margin requirements. In this case, isolated margin helps to make trading more flexible and localize potential risks.
Cross margin allows positions to offset each other, meaning the excess margin of one position can be used to satisfy the margin requirements of another position. Such an option helps traders control margin level for different positions within one trading account and prevent potential position liquidation.
Another feature that may help make trading more efficient is the trading terminal with built-in technical analysis instruments. Traders may use multiple indicators and oscillators to spot entry points with high potential and evaluate market conditions.
CEX.IO Broker: aggregated liquidity for the best execution price
CEX.IO Broker aggregates liquidity from the largest crypto exchanges for providing users optimized order execution and high liquidity. CEX.IO Broker constantly monitors spot market price rates and executes the clients’ orders by routing them to the biggest exchanges using liquidity providers. With advanced order execution logic, CEX.IO Broker users get optimal prices and risk management tools.