how bitmex cross margin

Cross Margin trading allows users with sufficient account balance to utilize it as collateral for all open futures contracts, regardless of the number of positions, offering a potential for increased profits but also heightened risk.

Oct 28, 2024 at 03:32 am

How to Use BitMEX Cross Margin

BitMEX is a cryptocurrency derivatives exchange that allows users to trade futures contracts, margin trading, and leverage. Cross Margin is a type of margin trading and it allows users to use their entire account balance as collateral for all of their open positions. This means that if you have a $10,000 account balance, you can use all of it to trade futures contracts, even if you have multiple positions open.

How to Enable Cross Margin

1. Sign in to your BitMEX account.
2. Click on the "Account" tab.
3. Click on the "Margin" tab.
4. Select the "Cross" option from the "Margin Mode" drop-down menu.
5. Click on the "Enable" button.

Margin Requirements

The margin requirements for Cross Margin trading are based on the total value of your open positions. The margin requirement for a Bitcoin futures contract is 10%, which means that you need to have 10% of the contract value in your account balance in order to open a position.

Liquidations

If the value of your open positions falls below you account balance (90% of margin requirement), BitMEX may liquidate your positions. This could lead to some or all of your cryptocurrency being lost.

Use Cross Margin With Caution

Cross Margin trading can be helpful to increase your profits, but it is important to use it with caution and properly manage risk. Leveraged trading can be risky and it is important to only trade with the capital that you can afford to lose.