Cryptocurrency Q&A
What is the leverage of Deribit perpetual?
What is the leverage of Deribit perpetual?
Silvia
Thu Sep 05 2024
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7 answers
1761
Can you explain to me in simple terms what the leverage of Deribit perpetual contracts is? I'm a bit confused about how it works and how it differs from traditional leverage trading. How does it affect my potential profits and losses, and what are the risks associated with using it? Is there a specific ratio or formula I should be aware of when using Deribit perpetual leverage? Additionally, how does Deribit manage the risks associated with leverage trading to ensure the stability of its platform?
7 answers
SakuraDance
Sat Sep 07 2024
The new leverage ratio means that for every USD in the account (minus any applicable trading fees), clients can now take on USD 100 of exposure. This provides traders with the ability to amplify their potential profits, but also carries increased risk.
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CryptoLord
Sat Sep 07 2024
It is important to note that while increased leverage can lead to greater returns, it also increases the potential for losses. Therefore, traders should carefully consider their risk tolerance and trading strategy before utilizing the full extent of the available leverage.
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Chiara
Sat Sep 07 2024
We have carefully analyzed the current market conditions and have determined that it is now appropriate to increase the maximum leverage offered to our clients.
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DigitalDukedom
Sat Sep 07 2024
We have implemented robust risk management measures to ensure that our clients are protected from excessive losses. These measures include margin calls and automatic liquidation of positions if the account balance falls below a certain threshold.
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SsangyongSpirited
Sat Sep 07 2024
With this adjustment, we are now comfortable to offer a maximum leverage of 100x. This represents a significant increase from our previous offering, allowing for greater potential returns for our traders.
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