How to play BitMEX contracts tutorial

How to Play BitMEX Contracts Tutorial

BitMEX is a peer-to-peer trading platform that allows traders to speculate on the price of cryptocurrencies using futures contracts. Futures contracts are agreements to buy or sell an underlying asset at a specified price on a future date.

Step 1: Create a BitMEX Account

• Navigate to the BitMEX website and click on the "register" button.
• Enter your email address, create a username, and set a strong password.
• Click on the "register" button and follow the on-screen instructions to verify your email address.

Step 2: Fund Your Account

• Log in to your BitMEX account and click on the "wallet" tab.
• Select the "deposit" option and choose the cryptocurrency you wish to deposit.
• Copy the deposit address and send the funds from your cryptocurrency wallet.

Step 3: Learn the Basics of Futures Contracts

• Futures contracts are agreements to buy or sell an underlying asset at a specified price on a future date.
• The buyer of a futures contract is obligated to buy the underlying asset at the specified price, while the seller is obligated to sell the underlying asset.
• The price of a futures contract is determined by the spot price of the underlying asset, as well as the time remaining until the contract expires.

Step 4: Choose a Trading Strategy

• There are many different trading strategies that can be used to trade futures contracts.

• Some common trading strategies include:

  • Longing: Buying a futures contract in the hope that the price of the underlying asset will increase.
  • Shorting: Selling a futures contract in the hope that the price of the underlying asset will decrease.
  • Scalping: Trading futures contracts by taking advantage of small price movements.
  • Arbitrage: Trading futures contracts on different exchanges to profit from price differences.

Step 5: Place an Order

• To place an order, click on the "trade" tab and select the futures contract you wish to trade.
• Enter the quantity of the contract you wish to buy or sell and the price at which you wish to execute the order.
• Click on the "buy" or "sell" button to place the order.

Step 6: Monitor Your Order

• Once you have placed an order, you can monitor its status by clicking on the "orders" tab.
• You can view the current price of the futures contract, as well as the profit or loss on your order.

Step 7: Close Your Position

• To close your position, click on the "close" button next to the order you wish to close.
• You can close your position at the current market price or at a specified price.

Step 8: Withdraw Your Profits

• Once you have closed your position, you can withdraw your profits by clicking on the "withdraw" button in the wallet tab.
• Enter the amount you wish to withdraw and the cryptocurrency you wish to receive.
• Click on the "withdraw" button to complete the transaction.