Have you heard of leverage on top of leverage? Now there's a new trend gaining popularity in the crypto circle.
A platform has launched a "fund account," which is actually borrowed from traditional finance, but it's just starting to become popular in the crypto world. Simply put, it allows traders to borrow more capital to amplify their operations — this instantly lowers the barrier for those who want to make aggressive bets.
Here's how it works:
1) User applies for a fund account 2) The platform provides a credit limit based on your initial funds 3) You can use this money to trade, and leverage effects come into play 4) Profits and losses are distributed proportionally
This has been standard on Wall Street for a long time, and now crypto is adopting this approach. It offers traders more opportunities, but the risks are indeed significant.
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GasGasGasBro
· 9h ago
Damn, here comes another set of money-grabbing schemes... Lowering the threshold just means more people get liquidated.
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AlphaWhisperer
· 10h ago
Leverage on leverage, this move is really playing with fire. Someone will inevitably get liquidated sooner or later.
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MysteryBoxAddict
· 10h ago
Another leverage stacking thing, the crypto world really dares to do everything, sooner or later it will blow up.
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GweiObserver
· 10h ago
Another new trick to cut leeks, stacking leverage on leverage can really kill you.
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BlockTalk
· 10h ago
Leverage stacking leverage, isn't that playing with fire? Only the brave dare to get on board.
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MoonBoi42
· 10h ago
Another leverage trap, waiting to harvest the little guys.
Have you heard of leverage on top of leverage? Now there's a new trend gaining popularity in the crypto circle.
A platform has launched a "fund account," which is actually borrowed from traditional finance, but it's just starting to become popular in the crypto world. Simply put, it allows traders to borrow more capital to amplify their operations — this instantly lowers the barrier for those who want to make aggressive bets.
Here's how it works:
1) User applies for a fund account
2) The platform provides a credit limit based on your initial funds
3) You can use this money to trade, and leverage effects come into play
4) Profits and losses are distributed proportionally
This has been standard on Wall Street for a long time, and now crypto is adopting this approach. It offers traders more opportunities, but the risks are indeed significant.