Cryptocurrency derivatives exchange BitMEX is adding two new high-leverage perpetual swap contracts for the popular meme tokenSHIB. The SHIB/USD and SHIB/USDT perpetual will allow traders to take leveraged long or short positions on SHIB with up to 33x leverage.
Perpetual swaps are a type of futures contract without an expiration date. BitMEX highlighted its new SHIB contracts will give traders access to some of the highest leverage amounts in crypto. The SHIB/USD contract uses a fixed bitcoin multiplier so traders can speculate on the SHIB/USD rate without owning either asset.
The SHIB/USDT perpetual will be a linear swap, offering SHIB price exposure with up to 20x leverage while being margined in the tether.
BitMEX adding leveraged SHIB contracts signals growing interest in meme tokens among traders looking for potential outsized returns. However, high leverage also amplifies losses, underscoring the risks involved.
SHIB has built a loyal following as the second most popular meme coin behind only Dogecoin. Leveraged products may attract new speculators to the often volatile SHIB market.
As the crypto derivatives market expands, exchanges like BitMEX are listing contracts for emerging assets to meet trader demand. However, excessive leverage presents hazards, especially for inexperienced retail traders.
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