Bitmex is the world’s largest cryptocurrency exchange margin trading. If you want to trade using margins, then Bitmex is one of the best and most well-funded exchange in the world. Before you start, you must understand what margin trading. In this article, I will guide you properly how to use bitmex.
Register at Bitmex
Please Click Here to open a Bitmex account, Fill in the registration form of the page as usual. After registering, you will be redirected to the trading platform. On Bitmex there are several asset pairs that can be traded such as Bitcoin, Cardano, Bitcoin Cash, Ethereum, Litecoin, Tron` etc. You can see at the top of their platform. The most traded pair is BTC / USD
Deposit to Bitmex Account
Unlike general exchanges where you can have ETH, USD, IDR and other balances in one account. At Bitmex only BTC can be used, and the deposit can only use BTC.
Start trading on Bitmex
Step 1 – Choose the type of contract
Propetual is a contract that does not have expired time. So that means you can open positions as long as you want, and this is the most widely used type of trading.
On this contract, you choose the price of bitcoin to go up and pass the strike price when the contract expires. If you find that when you expire the price of bitcoin past the strike price, you will get a profit.
On this contract, you choose the price of bitcoin to go down and pass the strike price when the contract expires. If you find that when you expire the bitcoin price drops and passes the strike price, you will get a profit. This type of UP and Down is a digital option like IQ Option. If you have ever traded at IQ Option, I am sure you will understand what strike and expiration time is.
4. Contract with expiry time
The fourth type of contract is similar to the first proposition contract above, the difference is here there is an expiration time or contract expiration. This means that when the contract is expired, your position is liquidated and profits/losses are calculated. In this guide we will choose the porpetual type
Step -2 Choose the Order Type
Limit functions to make an order to open a position at the price you install yourself. This is often called a Pending Order. So, for example, the current bitcoin price is $ 6000, and you want to buy at a price of $ 5800 then you have to use pending orders, later when the bitcoin price drops to $ 5800, your order will be automatically executed by the system.
Market functions to open a position directly at the current real-time price. So your order will be executed immediately according to the highest price in the order book.
Stop market functions like a limit order, the difference is that your order will enter the order book only when the price is at the price of the stop market that you installed. So you can say double pending orders. This feature is usually used by people who do not want the number of orders seen by others. In this guide, we will choose the market because we want the order to be executed immediately at the current price.
Step 3 – Choose Buy or Sell
Buy / Long
If you think the price of an asset will go up then choose Buy
Sell / Short
If you think the bitcoin price will go down then select Sell In the picture above, you can see Order Value = 10 BTC with Cost 1 BTC . It means that I buy 10 BTC with a capital of 1 BTC, this can happen because I use leverage, see below about leverage
Step 4 – Choose leverage
if we take 1x leverage for 1 btc @6000$ it has to double for 1 btc profit which is 12000$ and if btc move by 1% above you will have profit too by 1x of 1%. means 1% of 6000$ is 60$ if btc goes up by 1% your profit will be 60$x1x =60
If market goes up by 1% you will in profit if we take 5x leverage for 1 btc @6000$ it has to double for 5 btc profit which is 12000$ but if btc move by 1% above you will have profit too by 5x of 5%. means 1% of 6000$ is 60$ if btc goes up by 1% your profit will be 60$x5x =$300
If we take 10x leverage for 1 btc @6000$ it has to double for 10 btc profit which is 12000$ and if btc move by 1% above you will have profit too by 10x of 10%. means 1% of 6000$ is 60$ if btc goes up by 1% your profit will be 60$x10x =600 Conversely, if the BTC price drops from $ 6000 to $ 5400 then you lose
1 BTC and your position at liquidation then the loan is returned to the platform. Again you have to remember in this example you are holding 10 BTC so when the BTC price drops from $ 6000 to $ 5400 (down $ 600) then your position value drops 600 X 10 which is $ 6000.
Step 5 – Close Position
There are two reasons to close a position
When you want to secure profits When you want to cover losses because you don’t want to lose more After we open a Buy or Sell position, later after profit, we must close the position to secure profits. After closing the position, our capital of 1BTC will return to our balance, then the profit also for example in our example for $ 20,000 will also enter our balance (entered in BTC). And what borrowed 9 BTC will return to the platform.