June 29, 2023

5 min

Setting the New Level! The Maximum Leverage for Futures Trading Is Now 100X

WhiteBIT introduces a new feature that allows users to control leverage in their accounts, increasing it up to 50x and 100x.

“Leverage an important role during trading plays. An opportunity to increase the indicative profit it provides. However, with certain risks, it comes,” Yoda would say. And we may not be such good teachers, but to ensure that you don’t experience any difficulties using new leverage values, we will explain their features in this article.

What Has Changed?

WhiteBIT provides a cross-margin (collateral) balance to secure positions on the exchange. This is a single balance where all the assets that act as collateral are accumulated. When you set the leverage, it changes immediately for the entire account. However, maximum leverage values on specific futures or margin markets may be further limited.

• The maximum leverage for margin trading on WhiteBIT is 20x. That is, it does not change.
• And for futures trading on WhiteBIT, we’ve added 50x and 100x values. That is, the maximum available leverage reaches 100x.

Please note that the maximum leverage size for futures trading may be less than 100x in low-liquidity markets. The decision on what leverage levels are available depends on the trading platform. Limits provide an opportunity to control risk and protect traders from potential losses.

Please note that the maximum leverage for futures trading may be less than 100x on illiquid markets. In extreme price movements or deviation from the price index, WhiteBIT will also undertake additional protective measures. For example, adjust the maximum value of the leverage provided.

How Does It Work?

The leverage is set immediately for the entire margin (collateral) balance on the exchange. Still, now the maximum largest allowable size of a trading position values for futures and margin markets differ.

Example:

1) The user selects 10x leverage and then changes it to 100x for the futures market.

2) With 10x leverage set, their available balance is 1,000 USDT * 10 = 10,000 USDT.

3) If they choose 100x leverage for the futures market, their available balance will become 1000 USDT * 100 = 100,000 USDT.

4) The maximum available leverage will remain at 20x for margin trading positions. Users can use only 1,000 USDT * 20 = 20,000 USDT for margin positions.

Another example:

1. The user selects a leverage of 10x and then decides to change it to 100x.
2. With a set leverage of 10x, their available balance is 500 USDT * 10 = 5,000 USDT.
3. If the user selects a leverage of 100x, their available balance would be 500 USDT * 100 = 50,000 USDT.
4. However, the maximum available leverage would remain at 20x for margin positions. It means that the user can still only utilize 1,000 USDT * 20 = 20,000 USDT on the account.

What Is a Position Bracket When Trading with 50X and 100X Leverage?

We are constantly improving products and algorithms for effective risk management. In particular, we assign different collateral weights for assets* that can be used as collateral. This means that different assets are assigned different margin weights based on liquidity, volatility, and other parameters. The latest information is available on the WhiteBIT.

Additionally, we set a maximum position size for high leverage levels called a Position Bracket. For example, for leverage ratios of 50x and 100x, there is a bracket of 100,000 USDT and 50,000 USDT respectively.

If the set limit on the position size is exceeded, the remaining portion will be subject to leverage of 10x. For example:

1. Let’s consider a scenario where a user wants to open a position on the futures market (BTC-PERP) with a leverage of 100x, and he has 1,000 USDT.
2. He doesn’t have any active loans or positions, but the following conditions apply:
3. The user intends to open a position valued at 60,000 USDT. The position bracket for this market with 100x leverage is set at 50,000 USDT.
4. In this case, when opening the position, the user will have the following conditions:
5. For the portion of the total position that amounts to 50,000 USDT, leverage of 100x will be applied, resulting in (500 × 100) = 50,000 USDT. For the remaining portion of the total position, which amounts to 10,000 USDT, a leverage of 20x will be applied, resulting in (500 × 20) = 10,000 USDT.
6. Therefore, the user will have a position where 50,000 USDT is leveraged at 100x, and 20,000 USDT is leveraged at 20x, using their available capital of 1,000 USDT.
7. Detailed information can be found on the Trading Rules page in the “?” section above the trading terminal.

Please note that reducing leverage while having open positions increases the risk of potential liquidation, as the leverage will be adjusted for the entire collateral balance.

What a level!