How to close a contract on BitMEX

How to Close a Contract on BitMEX

BitMEX is a cryptocurrency derivatives exchange that allows traders to trade futures and perpetual contracts. Closing a contract on BitMEX involves several steps, which can vary depending on the type of contract being traded. This guide will provide a comprehensive overview of the process for closing both futures and perpetual contracts on the platform.

Closing Futures Contracts

1. Navigate to the "Positions" tab on the BitMEX dashboard. This will display a list of all open futures contracts.
2. Select the futures contract you wish to close. A pop-up window will appear, displaying the contract details.
3. Click on the "Close Position" button. This will bring up the "Close Position" dialog box.
4. Enter the desired quantity of contracts to close. Traders can choose to close the entire position or a partial amount.
5. Review the closing price and fees. BitMEX charges a taker fee for closing contracts, which is displayed in the dialog box.
6. Click on the "Close Position" button to confirm the transaction. The contract will be closed immediately, and the funds will be credited to the trader's account.

Closing Perpetual Contracts

1. Navigate to the "Positions" tab on the BitMEX dashboard. This will display a list of all open perpetual contracts.
2. Select the perpetual contract you wish to close. A pop-up window will appear, displaying the contract details.
3. Click on the "Close Position" button. This will bring up the "Close Position" dialog box.
4. Enter the desired quantity of contracts to close. Traders can choose to close the entire position or a partial amount.
5. Review the closing price and fees. BitMEX does not charge a taker fee for closing perpetual contracts, but there may be a funding fee or premium adjustment.
6. Click on the "Close Position" button to confirm the transaction. The contract will be closed immediately, and the funds will be credited to the trader's account.

Additional Considerations

• Market Orders: When closing a contract using a market order, the order will be executed at the current market price. This can lead to slippage, which is the difference between the desired price and the execution price.
• Limit Orders: Limit orders allow traders to specify a price at which they want to close the contract. The order will only be executed if the market price reaches the specified limit.
• Stop Orders: Stop orders are similar to limit orders, but they are used to close a contract when the market price reaches a certain level.
• Partial Closes: Traders can choose to close only a portion of their position. This can be useful for reducing risk or adjusting their exposure to the market.
• Fees: BitMEX charges a taker fee for closing futures contracts, but not for perpetual contracts. Traders should be aware of these fees before placing any orders.