BitMEX contract trading tutorial

Before embarking on futures contract trading on BitMEX, it's crucial to comprehend the inherent risks associated with leverage and the necessity of thorough research and skilled execution.

Nov 19, 2024 at 08:08 am

BitMEX Contract Trading Tutorial

BitMEX is a popular cryptocurrency exchange that offers a variety of trading products, including spot trading, margin trading, and futures trading. In this tutorial, we will focus on how to trade futures contracts on BitMEX.

Before you begin, you should be aware of the following:

• Futures contracts are leveraged products, which means that you can lose more money than you deposit.
• Trading futures contracts requires a high level of skill and experience.
• It is important to do your own research before trading futures contracts.

Step 1: Create a BitMEX Account

The first step is to create a BitMEX account. To do this, visit the BitMEX website and click on the "Sign Up" button. You will need to provide your email address, create a password, and agree to the terms of service.

Step 2: Deposit Funds into Your Account

Once you have created an account, you will need to deposit funds into it. BitMEX accepts a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. To deposit funds, click on the "Deposit" button in the top right corner of the screen. Select the cryptocurrency you want to deposit and follow the instructions on the screen.

Step 3: Choose a Trading Pair

The next step is to choose a trading pair. A trading pair is two cryptocurrencies that are traded against each other. For example, you could trade Bitcoin against Ethereum (BTC/ETH). To choose a trading pair, click on the "Trade" tab in the top menu bar. Then, click on the "Futures" tab. You will see a list of all of the available trading pairs.

Step 4: Place an Order

Once you have chosen a trading pair, you can place an order. To do this, click on the "Order" button in the top right corner of the screen. You will then need to select the order type, the quantity, the price, and the leverage.

Step 5: Monitor Your Order

Once you have placed an order, you can monitor it in the "Orders" tab. You will be able to see the status of your order, the price, and the amount of profit or loss.

Step 6: Close Your Order

When you are ready to close your order, click on the "Close" button in the "Orders" tab. You can then choose to close your order at the market price or at a specific price.

Tips for Trading Futures Contracts on BitMEX

• Use a stop-loss order. A stop-loss order is an order that automatically sells your contract if the price falls below a certain level. This can help you to limit your losses.
• Don't over-leverage. Leverage can magnify your profits, but it can also magnify your losses. It is important to only use as much leverage as you are comfortable with.
• Do your research. Before you start trading futures contracts, it is important to do your research. This includes learning about the underlying cryptocurrency, the risks involved, and the trading strategies that are available.