How does leverage slowly increase on BitMEX?

3 answers

• Bear3StonesNov 08, 2020 · 5 years ago
  Leverage on BitMEX slowly increases through a mechanism called the Auto-Deleveraging system. When a trader's position is liquidated due to insufficient margin, the system automatically deleverages the position by transferring the loss to profitable traders. This ensures that the system remains solvent and protects traders from potential losses. It's important to note that leverage increases gradually to prevent sudden liquidations and market disruptions. The Auto-Deleveraging system is a key feature of BitMEX's risk management system.
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• MasroorJan 30, 2023 · 3 years ago
  On BitMEX, leverage slowly increases as traders open and close positions. When a trader opens a position with leverage, they borrow funds from the exchange to increase their trading power. As the position remains open, the leverage gradually increases, allowing the trader to control a larger position size with the same amount of margin. This can amplify both profits and losses, so it's crucial for traders to carefully manage their risk and monitor their positions.
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• Djan kouadio DidierOct 07, 2024 · 2 years ago
  Leverage on BitMEX is designed to slowly increase over time to provide traders with more flexibility and trading power. This gradual increase allows traders to scale their positions without the risk of sudden liquidations. BitMEX's risk management system ensures that leverage is adjusted in a controlled manner, taking into account factors such as market volatility and position size. By gradually increasing leverage, BitMEX aims to provide a stable and secure trading environment for its users.
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