Margin trading is not suitable for beginners ter trading and should be done with careful caution and attention. Someone using the information provided ter this movie or article, including buying or selling, does it on his or hier own risk.
Bitmex permits margin trading of Bitcoin and crypto futures (altcoins). If you are íntimo with the basic features that Bitmex toneelpodium offers, you may find the following advanced features useful for your trades. Before wij start you have to have a BitMEX trading account. Using the verbinding here to register gives you a Ten procent discount on transaction fees for the very first six months.
Kicking off a trade instantly using ‘Market’
On the left pane – besides the option to specify a price to commence a fresh trade, wij have an option called ‘Market’ which will instantly buy or sell to the order book at the best available price. Use this if you are afraid that the market will “run away” from you but keep te mind that for large amounts it could buy or sell at a bad price (since the liquidity isn’t sophisticated enough to pack your large amount). Spil a reminder, the ‘Market’ option to end the trade will be located on the order line at the right cell.
The Zekering Limit or zekering loss
Next to the Market option, wij have the Zekering Limit. This option is used to samenvatting our order (buy/sell) only if a certain zekering price is triggered. This is mainly used spil a zekering loss, to cut losing positions and minimize the loss.
Zekering loss means – “sell on my guideline at a certain price if the market reaches a certain price”. Let’s say if wij are embarking a Brief (SELL) of 1 BTC size ($5600) at BTC = 5600$, and wij want to lose no more than 100$, then wij set our zekering loss to be spil goes after: The zekering price will be 5690, the limit price will be set to 5700. This way spil the price touches 5690 our directive to BUY $5600 at 5700 will be triggered, which will end our position and limit our loss to around 100$.
Tips for using Zekering Limit: If you brief (SELL) – make sure limit price is always higher than the zekering price, the opposite if you long (BUY). Also, taut stops are a good idea so you limit your loss, but keep te mind, te the volatile crypto market a position with a very close zekering order can lightly get terminated. You can always create a zekering limit directive for only part of your position.
If this is marked then the instruction will be for a reducing current position only and not opening an opposite position. For example, a LONG position of $Trio,000 wasgoed bought when BTC = 5100. Te order to take profit, I placed Two SELL positions, each $1500 (half), one at 5300 and the other at 5500. I also placed a zekering loss of $3000 at 5050. Let’s say the Bitcoin had gone down and triggered our stoplosss at $5050 and from there went back up and encountered our instructions at $5300 and $5500 – hence, if wij didn’t use Reduce Only then a Brief positions would have bot opened at $5300 and $5500. This is not what wij were attempting to do spil it wasgoed meant only to take profit from our LONG position (reduce that position ter other words).
This means wij only postbode directives to the order book and wij don’t buy from existing instructions. This is mainly used by robots and algo-traders. Te order to always pay the maker toverfee and not the taker’s (reminder: maker is the one who creates the instruction, taker buys from an existing guideline. The maker’s toverfee will usually be cheaper than taker’s).
Time ter force to samenvatting orders
Three options for providing time to your fresh order: Good Till Visera, Instant or Biombo – what is unfilled instantaneously is cancelled. The third option is Pack or Kill – This option is also used mainly by robotic trading. This means – if there is not enough volume to samenvatting the entire instruction, then do not samenvatting at all. It’s basically all or nothing.
Cross Margin Level
Leaving the margin caf on Cross means: “use all the available vaivén te our account spil collateral for our trading”. If you have enough funds on Bitmex I would suggest using this option and not at a very-high margin level. This way your position will not get liquidated at some point. The disadvantage, ter this option unless you’re using stop-loss, is that your loss is not limited or limited to the available movimiento on your account and not just to your position’s used oscilación.
You can always switch your margin level of a running position. You will see the effect on the liquidation price, which would switch accordingly.
A peak about liquidation. The liquidation price is related to the index price that Bitmex is using (50% Bitstamp + 50% GDAX Bitcoin price). This is significant since the list price is sometimes different from the index price.
A peak about Unrealized PNL – Spil explained ter our previous session, the Unrealized PNL is related according to the Mark Price. If wij want to see our Unrealized PNL according to the market updated price wij need to hover on the Unrealized PNL and then it will show up.
Managing more than one position
For advanced traders, Bitmex doesn’t permit the running of two corresponding positions, each to a different direction. Let’s say wij would like to apply a trading strategy and to open one 10x margin brief and one 10x margin long (This idea could be used ter days of decisions that would carry strong movement te either direction – like the SEC decision about the Winklevoss twins’ ETF). This can only be done from two different accounts. Also, Bitmex doesn’t permit two positions to run ter the same direction. It will update the margin and position size if you add to your current position.
Funding rates, or toverfee calculation of Bitmex
Bitmex uses a different strategy to calculate the fees traders pay. When the toverfee is displayed ter crimson – the LONG positions will pay the fees (since there are more LONG positions than Brief), and the brief positions will earn this toverfee, which is updated every 8 hours. When the toverfee is displayed ter green – the LONG positions get the toverfee. If you hover with the mouse you will see predicted funding rate for the next 8 hours.
Ter this situation, there are more LONG positions than brief, hence the LONG position will pay 0.0054% for the time period.
The Bitmex Options or Futures markets
Bitmex issues futures with dates of the end of each quarter of the year (March, June, September, and December).
The option represents the price of the asset at the end of the current quarter. This kleintje of trading is more speculative, and spil you may notice – the volume is sometimes very low, which creates very low liquidity. At the end of the quarter the options expire at a given price (Settlement price), if you are holding the option you will get paid the difference inbetween your buying price and the settlement price. More informatie about the futures can be found here. This can be used ter order to apply trading strategies like spreads.
Sometimes there are Binary options available on Bitmex. The option is regarding major issues ter the crypto world. For example – if SegWit is implemented, if the ETF is approved, etc. The price represents the probability the event will take place. Let’s say if the price of the option of the ETF is at 30, this means there is a 30% chance of approval. If ETF gets approved, then whoever bought the option at 30 will have the option made equal to 100. If the ETF gets rejected then the option will be made equal to zero.
The listig here gives you a Ten procent discount on transaction fees for the very first six months.
Special thanks to Gilgil for helping out with this article.