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Professional traders know not to use brokers offering insane leverage because of the risk the broker will be wiped out. Do you have a way to protect one custom
by jzwinck 6y ago
Professional traders know not to use brokers offering insane leverage because of the risk the broker will be wiped out.
Do you have a way to protect one customer's funds when another customer is ruined?
- seibelj 6y agoAll major offshore exchanges offer 100 to 1 leveraged crypto futures - it is table stakes for the industry. We have a lot of mechanisms plus an insurance fund to protect the system.
- hnracer 6y agoHigh leverage means less counterparty risk because the max loss is the capital residing on the exchange which is much less than the position size. As far as mechanisms there's auto deleveraging and insurance fund. Professional traders all wish to be on exchanges with high leverage because it means more volume is uninformed flow and therefore there is more alpha on the table. The pie is bigger.