The increased leverage is only available for isolated margin positions, meaning potential losses are capped at the initial margin used for the trade.
By Bena Ilyas
Edited by Julia Sakovich
Updated
2 mins read
Crypto derivatives trading just became much more volatile. BitMEX, a derivatives exchange based in Seychelles, has revealed a substantial boost in the maximum leverage available on its Ether perpetual swaps – a whopping 200x increase. The announcement comes amid growing market excitement over the debut of US spot Ether ETFs.
The strategic decision comes in the wake of the recent regulatory nod from the US Securities and Exchange Commission (SEC) for spot Ether ETFs. This eagerly anticipated advancement is poised to introduce substantial institutional funds into the Ethereum market, potentially triggering increased price fluctuations.
“If you’re looking for ETH trading opportunities, this is your chance to go big on price speculations for ETH before ETHETFs start trading,” declared BitMEX in a statement.
BitMEX CEO Stephan Lutz believes Wall Street’s changing sentiment could greatly increase Ether market volatility. “This is why 200x leverage for the ETHUSD perpetual swap couldn’t have come at a better time,” Lutz said. He noted Ethereum’s impressive 100% price surge over the past year, driven by institutional adoption, and sees the new leverage as an opportunity for high-risk, high-reward traders.
BitMEX users can access the new leverage by enabling the “Leverage Booster” in their settings and selecting up to 200x for ETHUSD in their order forms. This increased leverage is only available for isolated margin positions, meaning potential losses are capped at the initial margin used for the trade.
This isn’t BitMEX’s first high-leverage offering. In April, the exchange launched 250x leverage for its Bitcoin perpetual swap. In 2023, BitMEX also expanded its product portfolio with over 120 new derivatives contracts, including prediction markets and pre-launch listings.
BitMEX’s introduction of 200x leverage for Ether perpetual represents a bold move for a specific type of trader – those comfortable with significant risk. While it offers the possibility of significant gains, it also exposes users to the potential for severe losses.
Meanwhile, the broader market’s attention remains fixed on the launch of US spot ETFs and the resulting fluctuations in the Ether market. The outcome of BitMEX’s high-leverage venture, both for the exchange and its users, will unfold over the coming weeks and months, shaping a narrative of its own.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
