Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Hong Kong cryptocurrency derivatives trading platform BitMEX claims that on average, its users don’t use the maximum 100x leverage.
Hong Kong cryptocurrency derivatives trading platform BitMEX claims that on average, its users don’t use the maximum 100x leverage that the platform offers. BitMEX reported on the data in a post published on its official blog on May 15.
According to the post, the company’s co-founder and CEO Arthur Hayes had the data science team of the exchange pull up historical data on the average leverage usage for the bitcoin (BTC)/United States dollar perpetual swap.
Hayes stated that the data obtained this way show that “traders are quite ‘responsible’ in that they do not on average use the maximum amount of leverage.” Data shows that the monthly weighted average effective leverage on the bitcoin perpetual swap in May 2018 is 29x on long positions and 26x on short positions.
In April 2019, the monthly weighted average effective leverage on the same contract was reportedly 22x on long positions and 30x on short positions.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.