Despite Offering 100x Leverage, BitMEX Says Most Users Don’t Actually Leverage the Offer
- BitMEX’s customers do not use full 100x leverage offered to them.
- Only 20% of short positions exceeded 47x leverage, while the same percentage of users exceeded 54x leverage for long positions.
BitMEX, a crypto derivatives trading platform in Hong Kong, offers a maximum leverage of 100x. Despite having such a massive opportunity, the majority of users on the platform don’t actually use it. To go into greater detail, BitMEX published an official blog post on their statistics, based on data collected last month.
The post says that the CEO and co-founder of the company, Arthur Hayes, used the data science team from BitMEX did some research on the historical data of the company, specifically in the average leverage uses. The team examined the usage that specifically corresponded with the perpetual swap of the BTC/USD.
In the data, Hayes said that the traders are more “responsible,” because they avoid using the full leverage that they could use. Through the months, the majority of users held about 29x on long positions, while short positions were 26x leverage.
Last month, for the same contract, the monthly weighted average effective leverage showed 22x on long positions, with 30x on short positions, based on the data on the post. The post also says that 80% of the long positions in the last 12 months had seen a leverage of no more than 54x. Of the short positions, only 20% exceeded 47x leverage.
In mid-April, Cointelegraph reported on Trading Technologies International, and their decision to partner with BitMEX. The purpose of the partnership is to create an opportunity for traders of crypto derivatives to get involved with their products as well.
In a major development, at the end of April, sources said that E*Trade Financial Group would be offering crypto trading on their platform soon.
To view the full blog post from BitMEX, visit https://blog.bitmex.com/bitmex-leverage-statistics-april-2019/.