how bitmex trading works

To begin trading on BitMEX, you must first create an account by providing your email, creating a password, and agreeing to the terms of service.

Oct 29, 2024 at 02:36 am

Step-by-Step Guide to Trading on BitMEX

BitMEX, an acronym for Bitcoin Mercantile Exchange, is a popular cryptocurrency derivatives exchange that offers perpetual contracts, futures contracts, and a variety of trading instruments. Here's a detailed guide to help you understand how trading on BitMEX works:

1. Create an Account:

• Visit the BitMEX website (https://www.bitmex.com) and click on "Sign Up" in the top right corner.
• Enter your email address, create a strong password, and agree to the terms of service.
• Complete the verification process by submitting your personal information and verifying your email address.

2. Deposit Funds:

• BitMEX primarily accepts cryptocurrencies for deposits.
• Go to your "Wallet" section and select "Deposit" next to the desired cryptocurrency.
• Copy the deposit address provided and transfer funds from your external wallet.
• Deposits typically take a few minutes to process.

3. Funding Your Trading Account:

• After depositing funds, you need to transfer them to your trading account.
• Click on "Exchange" in the navigation bar and select "Transfer."
• Enter the amount you want to transfer and choose "Main" as the destination (this is your trading account).
• Click on "Submit" to complete the transfer.

4. Learn the Interface:

• The BitMEX trading interface is divided into several sections:

  • Order Book: Displays the current bid and ask orders for the selected contract.
  • Chart: Shows the price history of the contract.
  • Open Orders: Lists all your active orders.
  • Trade History: Shows your recent trades.
  • Account Summary: Displays your account balance, margin, and other information.

5. Place an Order:

• Select the contract you want to trade (e.g., XBTUSDM for Bitcoin futures) from the "Contracts" section.
• Choose an order type (Limit, Market, Stop-Limit, OCO).
• Enter the order size (in contracts), price (for limit orders), and leverage (if desired).
• Click on the "Buy" or "Sell" button to place your order.

6. Manage Your Positions:

• Once your order is executed, you can monitor your open positions in the "Positions" tab.
• You can adjust your leverage, add to your position, or close it by clicking on the "Adjust" button.

7. Calculate Profit/Loss:

• Profit/loss on BitMEX is calculated based on the difference between your entry and exit prices.
• The unrealized P/L shows the current value of your position based on market prices.
• The realized P/L shows the profit or loss on closed positions.

8. Withdraw Funds:

• To withdraw funds, go to the "Wallet" section and click on "Withdraw."
• Select the cryptocurrency and enter the amount you want to withdraw.
• Provide the withdrawal address and verify the transaction using your 2FA or security key.
• Withdrawals typically take several hours to process.