How to play BitMEX perpetual contract

How to Play BitMEX Perpetual Contract

IntroductionPerpetual contracts are a type of futures contract that does not have an expiration date. This means that they can be held indefinitely, or until the trader decides to close the position. Perpetual contracts are typically used for speculating on the price of an underlying asset, such as Bitcoin or Ethereum.

Opening a Position

1. Choose a trading pair. The first step is to choose the trading pair that you want to trade. BitMEX offers a variety of trading pairs, including BTC/USD, ETH/USD, and LTC/USD.
2. Set your position size. The next step is to set your position size. This is the amount of the underlying asset that you want to trade.
3. Choose your leverage. Leverage is a multiplier that allows you to trade with more capital than you have available. However, it is important to use leverage responsibly, as it can amplify both your profits and losses.
4. Place your order. Once you have chosen your trading pair, position size, and leverage, you can place your order. You can choose to buy or sell the underlying asset.

Managing Your Position

1. Monitor your position. Once you have opened a position, it is important to monitor it closely. You should track the price of the underlying asset and make adjustments to your position as needed.
2. Use stop-loss orders. Stop-loss orders are a type of order that automatically closes your position if the price of the underlying asset reaches a certain level. This can help you to protect your profits or limit your losses.
3. Take profit orders. Take profit orders are a type of order that automatically closes your position if the price of the underlying asset reaches a certain level. This can help you to lock in your profits.

Closing Your Position

1. Decide when to close your position. There are a number of factors that can influence your decision to close your position, such as the price of the underlying asset, your profit target, and your risk tolerance.
2. Place your closing order. Once you have decided to close your position, you can place your closing order. You can choose to buy or sell the underlying asset.
3. Calculate your profit or loss. Once your position is closed, you can calculate your profit orloss