What is cross leverage and how does it work in BitMEX?

3 answers

• Nov 30, 2021 · 3 years ago
  Cross leverage is a feature offered by BitMEX that allows traders to use their entire account balance as collateral for their positions. This means that traders can open larger positions than their available balance would normally allow. For example, if a trader has 1 BTC in their account and they use cross leverage, they can open a position worth more than 1 BTC. The advantage of cross leverage is that it allows traders to maximize their potential profits by taking on larger positions.
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• Nov 30, 2021 · 3 years ago
  Cross leverage works by using a system of liquidation prices to manage risk. When a trader opens a position using cross leverage, a liquidation price is set. If the price of the asset being traded reaches this liquidation price, the position will be automatically closed to prevent further losses. The liquidation price is determined by the leverage level chosen by the trader. Higher leverage levels result in lower liquidation prices, which means that positions are more likely to be liquidated. It's important for traders to carefully manage their risk when using cross leverage to avoid liquidation.
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• Nov 30, 2021 · 3 years ago
  Cross leverage is a powerful tool for experienced traders who are confident in their trading strategies. It allows traders to amplify their potential profits, but it also increases the risk of significant losses. It's important to note that cross leverage is not suitable for beginners or traders who are not familiar with the risks involved. At BYDFi, we recommend that traders thoroughly understand how cross leverage works and have a solid risk management strategy in place before using it.
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