Can You Trade Crypto with Leverage on MiCA-Licensed Exchanges?
Not every cryptocurrency exchange with a MiCA licence offers leveraged trading. The availability of this feature depends on the type of instrument, the regulations applicable to the service, and the offering available to customers in the European Union.
Does MiCA Allow Leveraged Trading?
A MiCA licence alone does not authorise an exchange to offer every type of financial product. Leveraged trading, including certain futures and perpetual contracts, may also be subject to MiFID II regulations. In such cases, the entity offering these products must hold the appropriate authorisations to provide investment services.
Why Might Leveraged Trading Be Unavailable in Europe?
An exchange may offer leveraged trading on its global platform but not make it available to EU customers. This is due to differences in regulations and restrictions affecting specific products. Leverage increases both potential profits and losses. With 5x leverage, a 5% price movement in the unfavourable direction can result in a loss equivalent to approximately 25% of the initial margin, before fees and other costs.
How Can You Check Whether an Exchange Legally Offers Leveraged Trading?
Before opening an account, check whether the exchange offers leveraged trading to customers in your country and whether the entity providing the product holds the required authorisations. Do not assume that an offering available on an exchange's global website is also available in Europe.
Which Exchanges Offer Leveraged Trading in Europe?
At micaintelligence.com, we compare exchanges that hold the required MiCA authorisations and have operational trading platforms available to European users. Exchanges for which futures contracts are listed on our platform hold the required authorisations to offer these services in Europe.
Visit the micaintelligence.com comparison tool and check for yourself which exchanges legally offer leveraged trading in Europe.