Can you explain how leverage functions on BitMEX?

1 answers

• Jan 15, 2022 · 3 years ago
  At 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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