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> - 100 people putting up $100 with 100x leverage You just made me realize how much cash trading platform probably are making using leverage. That explain why
by dwild 4y ago
> - 100 people putting up $100 with 100x leverage
You just made me realize how much cash trading platform probably are making using leverage. That explain why they were so quick to add theses coins. I'm curious to know how they manage the risk though.
- sdfhdhjdw3 4y agoHmmmm do fees scale with leverage? I don't know if that's true... My understanding is that leverage is profitable to trading platforms, not because the fees are bigger, but because bigger leverage is "more fun" and so people trade more. I don't know, you might be right.
- cersa8 4y agoThe fee is a percentage of the contract size, so higher leverage allows for bigger orders is higher fees.
- sdfhdhjdw3 4y agoThe contract size doesn't change with leverage. Do you mean a percentage of the notional value?
- cersa8 4y agoSorry, you are correct, the fee is a percentage of the notional value.