BitMEX TradFi Perps offer up to 20x leverage. This means traders can open a position worth 20 times their initial margin. A trader with 100 USDT in margin can control a position worth 2,000 USDT. However, leverage amplifies both profits and losses, and positions are subject to liquidation if margin requirements are not met.
How does leverage affect margin requirements?
BitMEX TradFi Perps offer up to 20x leverage across all available perpetual contracts, including single stocks like Tesla, Apple, and Nvidia, index ETF trackers such as the S&P 500 and Nasdaq, and currency pairs like USD/CNY and USD/JPY. At 20x leverage, a trader deposits just 5% of the total position value as initial margin. For example, opening a 1,000 USDT position requires only 50 USDT in margin, with the remaining exposure provided by the exchange.
Traders are not required to use the maximum leverage available. BitMEX allows traders to select any leverage level from 1x up to 20x before opening a position. Lower leverage settings require more margin per unit of exposure but provide a wider buffer before liquidation. The table below illustrates how leverage affects margin requirements:
| Leverage | Initial Margin (%) | Position Size per 100 USDT Margin |
|---|---|---|
| 1x | 100% | 100 USDT |
| 5x | 20% | 500 USDT |
| 10x | 10% | 1,000 USDT |
| 20x | 5% | 2,000 USDT |
Traders can select their leverage in the order panel before opening a position. BitMEX supports both isolated margin and cross margin modes for TradFi Perps.
What are the risks of using leverage on TradFi Perps?
Leverage amplifies both gains and losses proportionally. A 5% adverse price move at 20x leverage results in a 100% loss of margin, triggering liquidation.
Can traders adjust leverage after opening a position?
Traders can adjust leverage on BitMEX at any time. Reducing leverage increases the margin allocated to a position, moving the liquidation price further from the entry price. Increasing leverage does the opposite.