How to deliver BitMEX contract

To deliver a BitMEX contract, traders have the option of physical delivery (actual asset) or cash settlement (cash equivalent to asset's value) for futures contracts upon expiration.

Nov 12, 2024 at 04:46 pm

How to Deliver BitMEX Contract

Step 1: Understand the Difference Between Perpetual and Futures Contracts

Perpetual Contracts:

• Have no set expiration date.
• Traders can hold positions for an indefinite period.
• Offer significant leverage, typically up to 100x.

Futures Contracts:

• Have a predetermined expiration date.
• Contracts are settled on the expiration date.
• Offer lower leverage than perpetual contracts, typically around 20x.

Step 2: Open a BitMEX Account

• Visit the BitMEX website and click "Sign Up."
• Provide your email address, create a password, and agree to the terms of service.
• Verify your email address to activate your account.

Step 3: Fund Your Account

• Log in to your BitMEX account.
• Click on "Deposit" in the top right corner.
• Select your preferred deposit method (Bitcoin, Ethereum, Tether, etc.).
• Follow the instructions provided to transfer funds to your BitMEX wallet.

Step 4: Place a Trade Order

• Go to the "Trade" page for the desired contract.
• Choose the type of order you want to place (market, limit, stop-loss, etc.).
• Specify the contract quantity, leverage, and order parameters.
• Click "Place Order" to execute your trade.

Step 5: Monitor Your Position

• The "Positions" tab on the "Trade" page displays your open positions.
• Track the market price, unrealized profit/loss, and leverage used.
• Adjust your position or close it if necessary.

Step 6: Delivery Process

For Perpetual Contracts:

• No formal delivery process.
• Positions are settled in the underlying asset when you close your trade.

For Futures Contracts:

• Delivery occurs on the contract expiration date.
• You can choose to physically deliver the underlying asset or cash settle your position.

Cash Settlement:

• The exchange will settle the contract in cash equivalent to the underlying asset's market price.
• This is the default settlement method for most futures contracts.

Physical Delivery:

• You will be required to deliver the underlying asset in the form of Bitcoin or another eligible asset.
• The exchange will provide instructions on how to complete the physical delivery process.

Step 7: Close Your Position

• Once you are ready to close your position, navigate to the "Positions" tab.
• Select the position you want to close and click "Close Position."
• Specify the order parameters and click "Place Order" to execute your trade.

Additional Considerations:

• Leverage: Use leverage cautiously as it can both magnify profits and losses.
• Risk Management: Implement stop-loss orders and position size management techniques to control risk.
• Fees: Be aware of the trading fees and funding rates associated with BitMEX contracts.
• Disclaimer: Trading crypto derivatives involves significant risk and should only be conducted by experienced traders who understand the risks involved.