Cryptocurrency trading platform BitMEX is broadening its reach by adding new perpetual contract listings for Shiba Inu (SHIB), a meme token that has captured significant attention in the crypto community.
The platform's users can now take long or short positions on the meme coin sensation with up to 33x leverage.
For those not versed in the terminology, a perpetual contract is a distinct type of futures contract that does not have an expiry date, thus allowing traders to maintain their positions indefinitely. The recent introduction of these contracts allows traders to take large positions, amplifying both the leverage and associated risks.
BitMEX’s move to include SHIB perpetual contracts comes after an initial announcement yesterday, signaling the platform's increasing attention to diversifying its offerings. In particular, the SHIB/USD contract will operate as a quanto contract with a fixed Bitcoin multiplier. The arrangement enables traders to bet on exchange rate fluctuations without needing to own the underlying assets, using Bitcoin as the margin for potential gains or losses.
It's worth noting that the SHIB price has seen a modest uptick over the past 24 hours, rising by 1.5% according to CoinGecko data.
However, traders should exercise caution. The use of leverage, particularly at high levels, can amplify both gains and losses, leading to significant financial risks.
