What is the maximum leverage of BitFlyer delivery contract

The maximum leverage offered by BitFlyer for their Bitcoin (BTC) delivery contract is 10x for Professional Account holders, while Ethereum (ETH) contracts have a maximum leverage of 5x for the same account type.

Nov 20, 2024 at 02:24 pm

What is the maximum leverage of BitFlyer delivery contract?

BitFlyer, one of the leading cryptocurrency exchanges in Japan, offers a delivery contract that allows traders to speculate on the future price of Bitcoin (BTC) and Ethereum (ETH). The maximum leverage available for these contracts varies depending on the underlying asset and the account type.

Bitcoin (BTC) Delivery Contract

• Standard Account: Up to 2x leverage
• Professional Account: Up to 10x leverage

Ethereum (ETH) Delivery Contract

• Standard Account: Up to 2x leverage
• Professional Account: Up to 5x leverage

Requirements for Professional Account

To qualify for a Professional Account and access higher leverage, traders must meet the following requirements:

• Have a trading volume of at least 500 BTC or 100 ETH in the past 6 months
• Provide proof of income and tax documents
• Pass a suitability test administered by BitFlyer

How to Apply for Professional Account

To apply for a Professional Account, traders can follow these steps:

1. Log in to their BitFlyer account
2. Navigate to the "Account Settings" page
3. Click on the "Professional Account Application" tab
4. Complete the application form and submit the required documents
5. Wait for BitFlyer to review and approve the application

Risks of High Leverage

Using high leverage in futures trading can magnify both profits and losses. It is important to understand the risks involved before using leverage.

Here are some of the risks of high leverage:

• Increased potential for losses: Leverage can amplify losses as well as profits. If the market moves against your position, your losses can be greater than the initial margin you deposited.
• Margin calls: If your losses exceed your margin, the exchange may issue a margin call. This means you will need to deposit more funds to maintain your position. If you cannot meet the margin call, the exchange may liquidate your position, resulting in further losses.
• Emotional trading: High leverage can lead to emotional trading, as traders may be tempted to hold on to losing positions in the hope of recovering their losses. This can result in even greater losses.

Other Considerations

In addition to the maximum leverage available, there are other factors to consider when using BitFlyer delivery contracts:

• Trading fees: BitFlyer charges trading fees based on the contract value and trading volume.
• Funding fees: BitFlyer charges funding fees on open positions to ensure that the market price of the contract converges with the spot price of the underlying asset.
• Risk management tools: BitFlyer offers a variety of risk management tools, including stop-loss orders and position limits, to help traders manage their risk.