What causes my leverage to go up automatically on BitMEX?

5 answers

• Cardenas MurdockOct 20, 2022 · 3 years ago
  It's possible that the automatic increase in leverage on BitMEX is due to the system's dynamic leverage feature. BitMEX adjusts leverage based on market conditions and the amount of available margin in your account. When market volatility increases or decreases, BitMEX may adjust your leverage to maintain a certain level of risk exposure. This is done to protect both the exchange and traders from excessive losses. If you're uncomfortable with the automatic leverage adjustments, you can manually set your desired leverage level in the BitMEX trading interface.
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• Sabrina Solange Ruiz DiazJan 01, 2025 · a year ago
  The automatic increase in leverage on BitMEX could be a result of your position being liquidated. When the price of the cryptocurrency you're trading moves against your position, and your margin balance falls below the required maintenance margin, BitMEX may automatically increase your leverage to attempt to prevent your position from being liquidated. This is known as the auto-deleveraging system. It's important to closely monitor your positions and margin balance to avoid unexpected leverage changes.
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• CRYPTO CRYPTOMar 31, 2022 · 4 years ago
  On BitMEX, the automatic increase in leverage can also be influenced by the funding rate. The funding rate is a mechanism that balances the price difference between the perpetual contract and the underlying spot market. If the funding rate is positive, long positions pay funding to short positions, and if the funding rate is negative, short positions pay funding to long positions. When the funding rate is high, BitMEX may increase leverage to incentivize traders to take the opposite side of the market and balance the funding payments. This is a common practice on derivatives exchanges like BitMEX.
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• Raghvendra Pratap SinghApr 04, 2024 · 2 years ago
  At BYDFi, we don't have an automatic leverage increase feature like BitMEX. Our leverage remains constant unless manually adjusted by the trader. This allows traders to have full control over their leverage and risk exposure. If you prefer a more stable leverage experience, you may consider trading on BYDFi instead of BitMEX.
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• Gerry MerkleyDec 19, 2023 · 2 years ago
  The automatic increase in leverage on BitMEX is a unique feature of the platform. It aims to provide traders with flexibility and the ability to adjust their risk exposure dynamically. However, it's important to understand how this feature works and monitor your positions closely to avoid unexpected changes in leverage. If you have any concerns or questions about the automatic leverage increase on BitMEX, you can reach out to their customer support for further clarification.
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