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A comment on I watched a friend of mine pump a shitcoin on Binance by buying billboards. Parent comment

Re:I watched a friend of mine pump a shitcoin on Binance by ... by dwild on Tuesday July 12, 2022 @12:04PM (#32071901)
> - 100 people putting up $100 with 100x leverage

You just made me realize how much cash trading platform probably are making using leverage. That explain why they were so quick to add theses coins. I'm curious to know how they manage the risk though.

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Re:I watched a friend of mine pump a shitcoin on Binance by ... by sdfhdhjdw3 on Tuesday July 12, 2022 @12:15PM (#32072075)
Hmmmm do fees scale with leverage? I don't know if that's true...

My understanding is that leverage is profitable to trading platforms, not because the fees are bigger, but because bigger leverage is "more fun" and so people trade more.

I don't know, you might be right.

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Re:I watched a friend of mine pump a shitcoin on Binance by ... by cersa8 on Tuesday July 12, 2022 @12:51PM (#32072643)
The fee is a percentage of the contract size, so higher leverage allows for bigger orders is higher fees.
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Re:I watched a friend of mine pump a shitcoin on Binance by ... by sdfhdhjdw3 on Tuesday July 12, 2022 @12:58PM (#32072748)
The contract size doesn't change with leverage.

Do you mean a percentage of the notional value?

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Re:I watched a friend of mine pump a shitcoin on Binance by ... by cersa8 on Tuesday July 12, 2022 @04:48PM (#32075480)
Sorry, you are correct, the fee is a percentage of the notional value.
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