1. Aiwaka AdventuresHome
  2. Blockchain Briefs

What does leverage trading on exchanges mean? (Leveraged trading exchange source code)

• Blockchain Briefs • 67 views

What does leverage trading on exchanges mean? What does leverage trading on exch

What does leverage trading on exchanges mean? (Leveraged trading exchange source code)

What does leverage trading on exchanges mean? What does leverage trading on exchanges mean?

In the field of blockchain, due to the nature and characteristics of cryptocurrencies, Bitcoin has strong liquidity and programmability. However, over time, its volatility has gradually expanded to a larger scale. In order to allow more people to participate and obtain more funds, many exchanges will launch their own leveraged products for investment or trading. “Leverage” refers to the act of longing or shorting a certain digital asset using a marked price. “Automatic Margin Maintenance” (AMM) is a way of placing bets on this market through a method called reverse contracts. For example, “automatic margin maintenance” means that when purchasing a certain quantity of coins at a relatively stable price, this type of operation can be achieved. However, if the user wants to engage in high-leverage risk control, they must first buy a small portion of coins from the spot market, and then sell the remaining small coins to obtain higher-value coins. This creates a large amount of arbitrage space in the market, which means that some small retail investors do not have enough funds to chase profits. Therefore, when considering the attributes of leveraged products, it is actually a major variable factor.

For leverage, it means that profits can be earned in trades without any transaction fees; at the same time, there may be corresponding costs as margin, reducing the investment loss costs for investors and increasing the overall return on investment. This is actually a normal phenomenon in the whole market and reflects the healthy development of the entire industry. So what is leverage on exchanges? Currently, all digital assets are referred to as “derivatives”. This includes the most popular type of financial instruments such as futures contracts. According to Coinmarketcap data, as of June 2, 2020, there were a total of 27 virtual currencies with a market value of $168.9 billion globally (with BTC accounting for 30%).

Leveraged Trading Exchange Source Code

Recently, SlowMist Technology conducted data analysis on leveraged trading exchanges for digital assets through source code and released relevant code.

According to public information, Huobi Spot is currently one of the largest futures contract markets in the world, providing full-process and real-time market information and settlement services for derivatives supporting tokens such as BTC and ETH; while BitMEX perpetual contracts mainly target US investors and have a large user base in Asia and Europe, satisfying the trading needs of users in different regions and thus gaining favor from many institutions. In addition, according to official announcements, Huobi launched leveraged trading functions on June 15 and will also initiate USDT perpetual contract trading.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/08/13/what-does-leverage-trading-on-exchanges-mean-leveraged-trading-exchange-source-code/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/13/2023 18:52
Next 08/13/2023 19:15

Recommended articles