Robinhood Launches 10x Leverage on Bitcoin and Ether Perpetual Futures Amid Market Volatility

Retail trading app Robinhood has launched perpetual futures contracts on its platform for Bitcoin and Ether with up to 10x leverage.

This move comes just a day after $478 million in liquidations wiped out traders, making some question whether it's a sign of fresh capital entering the market or borrowed money feeding a crowd that's already experienced major losses.

Leverage allows traders to control larger positions with less money but can also amplify volatility and increase the likelihood of forced sales when prices drop.

Robinhood's perpetual futures settle profits and losses every 15 minutes, and with leverage as high as 10x, a 10% drop in Bitcoin's price could wipe out an entire margin, forcing traders to sell their positions.

This can create a cascade effect where liquidations push prices down further and increase the likelihood of more forced sales.