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edited on 04/05/2020 at 10:23 PM

BitMEX - instruction

BitMEX is the largest and most visited derivative crypto exchange in the world.

It has hundreds of thousands of active users, generating trading volumes in billions of USD on the stock exchange. Why is there so much interest in this exchange? First of all, it is liquidity. Traders have ample room to trade more capital. The second and quite fundamental reason, especially for retail clients, is the opportunity to open a short position. So how do you start trading on this stock exchange? Trading on BitMEX is not for beginners. In this article you will also find BitMEX instructions.

1. Create an account on BitMEX

We need to create an account before we trade. Just go to the (link), through which we get to the basic exchange website.

Click on the register button, which will take us to the registration form.

This will direct us to the registration form that needs to be completed. We need to enter our email, password and surname. They do not require verification of the identity card, passport or account statement during registration or during the use of the Exchange. After creating the account, we will receive an email where you need to click the Activate account button. Following this instruction, we have the entire trading account ready.

2. First deposit

Before we move on to trading itself ... We need to deposit the first coins into our account. The only way to deposit is via Bitcoin. Other cryptocurrencies and the USD is not accepted by the Exchange. Therefore only Bitcoins need to be moved here! Once sent, the coins are credited to the account within 10 minutes. To paste, we need to copy the BTC address or scan the barcode. The minimum stock exchange deposit is 10,000 satoshi.

 

If we want to withdraw our BTC from the stock exchange. We will move one window down to the withdraw section. There it is exactly the opposite. We enter the address where we want to send our earned coins. The withdrawal fee is 0.001 BTC. All transactions are sent in bulk during lunch. So if we send coins during dinner, we have to wait until the next day to send them.

3. Trading on BitMEX - BitMEX instructions

Let's go to the trade section. Here we can see several different windows and sections. On the far right, we can see the order history. In the middle we see a graph. Below the graph is an order book in the form of a graph. Right next to the left is the order, but we can see the list of short or long orders directly. On the far left is the section that we will use to open and close the store. In the top bar we see the cryptocurrencies that we can trade on this stock exchange. In the bottom bar, you'll see our open stores.

We will be most interested in the bar on the left. The other are just indicators of current price and order book. However, no further action will be taken through these tools.
Before we start opening our first store, it should be remembered that BitMEX does not buy or sell real Bitcoins on the Stock Exchange. Trading can be compared here to the form of bet, whether the price goes up or down. If the price goes up and we open a long / buy contract, then according to the price increase will depend on our profit. This is also the case for short / sell contracts. So we can also earn a price drop.

4. We execute trades on BitMEX Stock Exchange

So we have 3 ways to enter our first store opening request.

  1. Over the Limit, we can place an order to open a store in the order book if we want to open a long or short contract at a different price than the current one. We use this tool most often when we are waiting for a price drop, for example, and want to buy for cheaper. Or open a contract at a cheaper price.
  2. Through the market, we open a shop at the current price as it is today.
  3. Stoploss , like on other exchanges, serves as a protection against greater loss. If the market goes against us and we do not want to lose more than we have defined in our trading strategy, just enter stoploss. For example, if we open a buy / long contract for Bitcoin and the price goes down, we can protect ourselves from a greater loss and enter a stoploss. After dropping to a certain level, the shop automatically closes us in a smaller loss.

5. Set limit command and stoploss

How to set the limit command correctly:

  1. Quantity is the amount of USD worth entering into a business. If you enter 10 USD. We will open a trade with a capital of $ 10.
  2. Limit Price is the price at which we want to open the store.
  3. Buy / long and short / sell is the setting to open our store. If we want to bet on price growth, we open the store by pressing the long button. In case of expected price decrease, we press short
  4. Cost is the amount at BTC for which we open a business. Don't be mistaken about the fee charged by the stock exchange!

In the stoploss section we specify the protection of the position against a larger price drop. It works the same as a limit command. The difference is that stop price is a value that automatically closes a store after a price drop. This eliminates the risk of a larger account loss. If we have a buy / long position, we have to set the stoploss button set sell stop. In the case of a short contract it is the other way around (using the set buy stop button).

Leverage is a tool that increases the volume of our capital that we have in business. This means that if we have, for example, $ 200 converted into a BTC to enter the store, we can open a trade worth $ 2,000 ( Maximum x100 ) with the same capital as a lever / leverage . On the other hand , the risk of loss also increases from increased leverage . So if we open a leverage x10 business, after a price drop of 10%, we will lose all the capital we had in that business. Therefore, carefully use this tool!

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