Analysis: BitMex traders face liquidation risk due to leveraged trading

During the slump in global asset classes, cryptocurrency investors are learning bitter lessons from the negative effects of leverage. Since March 6, Bitcoin price has fallen by more than 15%, and BitMex, the world's largest Bitcoin derivatives exchange, has thousands of traders facing liquidation. According to Skew data, the BitMex trading platform suffered the largest Bitcoin liquidation in three months on Sunday. TokenAnalyst.io data shows that the exchange has cleared more than $ 190 million in the past 24 hours. BitMex provides up to 100 times leverage for futures contracts. When the transaction deteriorates, users who borrow funds face the risk of margin call notification and may eventually lead to liquidation of positions. Coin Metrics co-founder Nic Carter said that due to high leverage, the actual loss may reach $ 22 million.