The crypto exchange Bitfinex has recently announced its Bitfinex Liquidation Feed on Twitter. The product, which is a real-time liquidation feature, is described as a new feature to improve the transparency of the leveraged positions on the platform.
This is a part of the company’s updates in order to roll out its new derivative product, which will be launched next week.
According to the company’s CTO, Paolo Ardoino, Bitfinex is finally moving forward with its plan of 100x leverage. He affirmed that high leverage is always accompanied by a very high risk, so having this new platform could be important in order to help the investors who are looking to be well-informed as they are looking for positions to take leverage.
Ardoino also affirmed that full transparency was one of the main goals of the company with the launch of the new derivatives market. This, he believes, will help to avoid any complaint from the users who will get on board in the near future.
Because of this, he plans to increase the transparency standards of all the aspects of the company to make investors are prepared as possible to use their money well.
The Relationship Between Leverage and Liquidation
When investing using leverage, the liquidation of assets is a very important statistic to watch out for. If the leverage used is up to 100x, then the need for being careful is even more important.
This is because Bitcoin and crypto trading is very automated. When there is a considerable crash, many automatic triggers liquidate positions, which causes a lot of volatility. This is why you need to be careful with liquidations.
They can act like a tidal wave that will sweep the market completely and may make you lose a lot of money if you use leverage and does not notice one of them coming.
[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.