As interest in leveraged trading products like the Nexo Booster grows, Bybit has announced ‘Smart Leverage’ an extension to its Earn Platform that promises up to 200X leverage, and new risk mitigation tools.
Bybit says its Smart Leverage product aims to equip crypto traders with a range of tools to capitalize on market opportunities while also minimizing risks associated with leveraged trading.
What Is ByBit Smart Leverage?
Smart Leverage is a non-principal-protected structured product designed to assist users in navigating extreme market volatility while maximizing gains through high leverage.
With Smart Leverage, traders can enter leveraged positions of up to 200x for select cryptocurrencies like Bitcoin (BTC) and Ether (ETH), at the same time being protected against liquidation risks until the settlement date.
The payoff at settlement is determined by comparing the settlement price to the breakeven price, providing clarity and transparency in trading outcomes.
Key Advantages
- No Liquidations Before Expiration: Smart Leverage provides traders with the confidence to engage in high-leverage trading without the fear of sudden liquidations. This feature ensures that traders can maintain their positions during periods of market turbulence, allowing them to fully capitalize on short-term volatility.
- Flexible Profit-taking: One of the interesting features of Smart Leverage is its flexibility in profit-taking. Traders have the freedom to lock in gains at any point during the subscription period, enabling them to adapt their strategies to changing market conditions.
- Zero Fees: Smart Leverage comes with the added benefit of zero fees, ensuring that traders can fully enjoy their returns without any deductions.
When to Consider Smart Leverage
Smart Leverage is particularly valuable in scenarios such as:
- Rapid market fluctuations, including V-shaped movements.
- Situations where traders have a strong conviction in the direction (long or short) of their positions.
- Instances where high leverage is desired without the associated risks of premature liquidation.
Risk Management
While Smart Leverage offers significant potential for gains, it’s crucial for traders to be aware of the associated risks. As with any leveraged trading product, there’s a possibility of losing the entire investment if the settlement price moves unfavorably. Even with a guarantee from Bybit not to liquidate before settlement date, Smart Leverage still involves significant risk, and users should carefully consider their risk tolerance before engaging in leveraged trading.
