Can you explain the concept of leverage and its impact on trading digital assets on BitMEX?

1 answers

• Dec 29, 2021 · 3 years ago
  Leverage is a key feature offered by BitMEX that allows traders to borrow funds to increase their trading power. With leverage, traders can open positions larger than their account balance, effectively multiplying their potential profits or losses. For example, with 10x leverage, a trader can control $10,000 worth of digital assets with just $1,000 in their account. This can be a powerful tool for experienced traders looking to maximize their returns. However, it's important to note that leverage also amplifies the risk of losses. If the market moves against a leveraged position, losses can exceed the initial investment. Traders should carefully consider their risk tolerance and use leverage responsibly to avoid significant losses.
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