In a strategic expansion, cryptocurrency trading platform BitMEX is tapping into the meme token frenzy by introducing new perpetual contract listings for Shiba Inu (SHIB). The sensational meme coin that has taken the crypto community by storm can now be traded on BitMEX with up to 33x leverage, allowing users to go long or short on SHIB.
Perpetual contracts, a distinct breed of futures contracts with no expiration date, have become the focus of attention. This innovative addition enables traders to maintain positions indefinitely, ushering in a new era of trading flexibility. However, it’s essential to grasp that these contracts carry amplified leverage and corresponding risks.
BitMEX’s move to include SHIB perpetual contracts follows a recent announcement, marking the platform’s commitment to diversifying its offerings. The SHIB/USD contract adopts the role of a quanto contract with a fixed Bitcoin multiplier. This setup empowers traders to capitalize on exchange rate fluctuations without possessing the underlying assets, as Bitcoin serves as the margin for potential gains or losses.
While the SHIB price has displayed a modest 1.5% upswing over the last 24 hours, as per CoinGecko data, a note of caution resonates. The allure of high leverage levels comes hand in hand with amplified gains and losses, spelling out substantial financial risks that traders should navigate with care.
