A trader turned $2,500 into $200,000 by buying XRP futures with 500x leverage on cryptocurrency exchange Rollbit on Tuesday.
XRP jumped by 26% during U.S. trading hours after Ripple Labs, the company behind XRP, received “final” regulatory approval to offer the RLUSD stablecoin in the U.S.
The savvy trader opened a position worth $2,560 when XRP was trading at $1.9025 and the amount of leverage meant that the position would have been liquidated if price slumped below $1.9004. The position was closed gradually between $2.13 and $2.29, netting a realized return of around 7,500%.
XRP is trading at $2.34 as it continues to outperform the wider market. It is up by 301% in the past 30-days, TradingView data shows.
It’s worth noting that trading with 500x leverage is a tremendous risk as the volatile nature of cryptocurrencies means that the position will be liquidated most of the time. Rollbit’s XRP market has racked up $186 million worth of volume over the past 24-hours and offers up to 1000x leverage.