Leverage – No Borrowing

Parcl v3 offers a unique approach to leverage and liquidity in its trading system. Instead of creating traditional credit markets for traders to borrow funds, leverage is applied directly to price movements. This means traders can gain exposure to market changes without the need for collateralized borrowing.

In this system, traders open positions using margin, and their exposure is based on the notional value of their position. The liquidity pool acts as the counterparty for all trades, effectively managing solvency and risk for the entire platform. This structure allows traders to put on positions with varying levels of exposure without requiring a separate borrowing market.

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