Can you explain how leverage functions on BitMEX?
Richardson HutchisonDec 26, 2021 · 3 years ago1 answers
I would like to understand how leverage works on BitMEX. Can you explain it to me in detail? How does it affect my trades and potential profits or losses?
1 answers
- Dec 26, 2021 · 3 years agoAt BYDFi, we understand the importance of leverage in trading. On BitMEX, leverage allows traders to control larger positions with a smaller amount of capital. It works by borrowing funds from the exchange to increase the size of your trade. The leverage ratio determines how much you can borrow. For example, with 50x leverage, a $1,000 deposit would allow you to open a position worth $50,000. This means that your potential profits or losses are magnified by the same factor. However, it's important to remember that leverage also increases the risk of significant losses. It's crucial to have a solid risk management strategy in place and only use leverage if you fully understand the risks involved.
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