No one uses 100 times leverage for cryptocurrency transactions

No one uses the 100 times leverage that is offered to them

BitMEX is a related cryptocurrency derivatives trading platform that provides customers with up to 100 times leveraged trading services. Despite this great opportunity, most users on the platform didn't actually use it. Last month, the BitMEX exchange published a more detailed statistical result based on the collected data, of which only 20% of the short positions used 47 times leverage, and the same 20% used 54 times the long position leverage.

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Arthur Hayes, co-founder and CEO of BitMEX Exchange, and his data science team conducted some research on their historical data, including the use of leveraged trading services. According to the analysis, Arthur Hines said that cryptocurrency traders are usually more cautious, they will avoid using the 100 times leverage that can be used. In the past few months, most users will only choose 29 times the long position leverage, or 26 times the short position leverage.

In addition, the monthly weighted average effective leverage of long positions in April this year was 22 times and the short position was 30 times. In the past year, 80% of long positions have never used more than 54 times leverage, while in short positions, only 20% of trades have leverage more than 47 times.

In mid-April, Trading Technologies International, a global provider of Chicago Transaction Solutions, announced a partnership with BitMEX to give more people the opportunity to participate in cryptocurrency derivatives trading. (Golden Finance)

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