BTC.sx adds Bitfinex as third exchange for tracking bitcoin prices

Updated, Nov. 5, 2014 15:14 GMT: response from BTC.sx on order flows and leverage.

BTC.sx has partnered with Bitfinex to bring the exchange's order book data to its Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, giving traders a third choice of venue for betting on bitcoin prices.

Two weeks ago, BTC.sx added itBit. Prior to that, Bitstamp prices were the single choice for traders.

The move is being touted as giving traders access to greater Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

The only currency transacted on BTC.sx is bitcoin. Traders can bet on leveraged CFD-like instruments tracking prices from the three exchanges. The "sell" and "buy" values flow directly from the top level quotes of their respective exchanges. This differs slightly from other bitcoin CFD offerings, which add a fixed spread to the traded price and apply an expiry date on positions.

The announcement comes shortly after Bitfinex announced plans to help fuel its own growth. It partnered with white label solution provider AlphaPoint to enhance performance and increase capacity.

The Finextra report says that "Bitfinex users will see further liquidity improvements with the arrival of traders from BTC.sx", implying that some or all trades will actually flow through to the exchange. This would eliminate BTC.sx exposure to losses as a counterparty, but would also limit their potential "winnings". If true, this also opens up the question of who is supplying margin- BTC.sx, Bitfinex, or both?

BTC.sx has informed DC Magnates that positions taken for all three instruments are in fact routed to their respective exchanges, where one should observe their order executed. They also confirmed that they are the sole suppliers of leverage for positions taken on their platform.