USDT/USD is a currency pair for Tether to US Dollar trading. It represents the price of USDT quoted against USD. USDT is a stablecoin cryptocurrency asset, therefore the USDT/USD ratio tends to gravitate towards 1-to-1. Yet, most of the time, 1 USDT is almost equal to 1 USD, but not exactly, which creates opportunities for profitable trading.
Oftentimes traders hold USDT to store the value before converting it to fiat or to other cryptocurrency. In that case, there is no active USDT to USD trading, but rather exchanging one currency to another. Yet, since there are small USDT price changes relative to dollar, applying leverage makes active USDT/USD trading also economically reasonable.
On CEX.IO Broker, you do USDT/USD margin trading. It means you use leverage to open positions with a derivative financial instrument, contract for difference. Although the changes of USDT price relative to USD are small, with leverage at your fingertips, the basic rule of trading remains the same. Open Long positions if you expect USDT price to go up and Short - if down.
You can trade USDT/USD with leverage ranging from 2x to100x. Since the nature of the pair provides a narrow corridor of volatility, a bigger leverage amplifies the potential gains (and risks respectively) from small price movements.
It is not mandatory to own USDT for USDT to USD trading via CEX.IO Broker platform. The idea of trading on the derivatives market is earning on the cryptocurrencies price changes with margin trading. It means you can trade cryptocurrencies that you actually don't own.
The USDT/USD pair enjoys the same benefits as all other pairs on the platform, including the liquid order book and tight spreads. In addition, trading this pair involves much lower fees due to a narrower range of potential volatility.
At CEX.IO Broker, we understand the importance of acting quickly to capture the market opportunities. That’s why moving funds in and out of the platform with ease is crucial for traders.
CEX.IO Broker allows you to fund trading accounts with BTC, USDT, and ETH. And any seasoned trader knows that sending cryptocurrencies via blockchain takes time. Transactions need to be mined, blocks - confirmed.
If you plan your trading in advance, the time it takes to send your funds via the blockchain can (and should!) be a part of that plan. However, often, you need to top up your account much faster. That’s why we’ve added a transfer from CEX.IO. With it, you can fuel your account instantly and free by moving your funds from CEX.IO to CEX.IO Broker.
Instant transfers between two platforms makes funding of your strategies simple and puts you in the driver seat for capturing the opportunities provided by the market.