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How long does it take for a BitMEX contract to settle

To avoid contract settlement on BitMEX, traders can close their positions before the designated settlement time or roll them over to the next contract.

Nov 20, 2024 at 04:52 pm

How long does it take for a BitMEX contract to settle?

BitMEX contracts settle on a daily basis, with the settlement time varying depending on the contract type. For perpetual contracts, settlement occurs at 4 PM UTC, while for futures contracts, settlement occurs on the last trading day of the contract.

What is the process for settling a BitMEX contract?

The process for settling a BitMEX contract is as follows:

  1. At the settlement time, the contract price is determined. This is done by taking the average of the prices of the contract over the last hour of trading.
  2. All open positions in the contract are closed. This means that all longs are liquidated at the settlement price, and all shorts are liquidated at the settlement price.
  3. The profit or loss on each position is calculated. This is done by multiplying the difference between the settlement price and the entry price of the position by the number of contracts held.
  4. The profit or loss is credited or debited to the trader's account. This is done in the trader's preferred currency.
How can I avoid having to settle a BitMEX contract?

There are two ways to avoid having to settle a BitMEX contract:

  1. Close your position before the settlement time. This can be done by placing a market order or a limit order.
  2. Roll your position over to the next contract. This can be done by placing a market order or a limit order to buy or sell the next contract.
What are the benefits of settling a BitMEX contract?

There are several benefits to settling a BitMEX contract, including:

  • You can lock in your profits or losses. This is important if you want to avoid the risk of the market moving against you.
  • You can free up your capital. This can be used to trade other contracts or to withdraw your funds.
  • You can avoid having to pay any additional fees. BitMEX charges a fee for each contract that is settled, so by settling your contract before the settlement time, you can avoid this fee.

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