How to trade contracts on BitMEX

Understanding how to trade contracts on BitMEX is essential for experienced traders and investors seeking advanced cryptocurrency trading opportunities.

Nov 14, 2024 at 10:21 am

How to Trade Contracts on BitMEX: A Comprehensive Guide

Introduction:

BitMEX is a popular cryptocurrency derivatives exchange that offers a variety of contracts, including perpetual swaps, futures, and options. As a leading player in the blockchain industry, understanding how to trade on BitMEX is crucial for experienced traders and investors seeking advanced trading opportunities.

Step 1: Creating an Account

• Visit the official BitMEX website and click on "Sign Up".
• Enter your email address, create a strong password, and complete the CAPTCHA verification.
• You will receive an email confirmation. Click the link to verify your email address and activate your account.

Step 2: Depositing Funds

• Log in to your BitMEX account.
• Navigate to the "Wallet" section.
• Select the desired cryptocurrency (e.g., Bitcoin, Ethereum) and click on "Deposit".
• Copy the deposit address provided or scan the QR code using your cryptocurrency wallet.
• Send the desired amount of cryptocurrency to the specified address.

Step 3: Funding Your Margin Account

• Margin trading on BitMEX requires you to deposit collateral to cover potential losses.
• Navigate to the "Margin" section in your account.
• Select the desired trading account.
• Transfer funds from your wallet to your margin account by clicking on "Transfer".

Step 4: Understanding Contract Types

• Perpetual Swaps: Contracts that never expire and allow for continuous trading.
• Futures Contracts: Contracts with a fixed expiration date and a predetermined price.
• Options Contracts: Contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date.

Step 5: Placing a Trade

• Select the desired contract type.
• Choose the trading pair (e.g., BTC/USDT).
• Determine the desired order type (e.g., market, limit, stop-limit).
• Enter the trade details, including the quantity, order price, and leverage (if applicable).
• Click on "Buy" or "Sell" to execute the trade.

Step 6: Monitoring and Managing Orders

• The "Orders" section displays all your active and historical orders.
• Monitor the progress of your trades, including their open price, current price, and profit/loss.
• Use the "Take Profit" and "Stop Loss" features to manage risk and automate trade execution based on predetermined conditions.

Step 7: Closing a Position

• To close a position, open the "Positions" section.
• Select the desired position and click on "Close Position".
• You can also use the "Close All Positions" option to close all open positions simultaneously.

Step 8: Withdrawing Funds

• Navigate to the "Wallet" section.
• Select the desired cryptocurrency and click on "Withdraw".
• Enter the withdrawal address and the desired withdrawal amount.
• Complete the two-factor authentication verification.
• The funds will be transferred to the specified address once the withdrawal is processed.