Why BitMEX margin trading is the best and legit option for traders?

by Trailing Crypto cryptocurrency experts

Crypto trading market keeps on changing its movements, but smart traders make use of the latest tools and technologies that help them earn instant profits. Trading cryptocurrencies on the best trading platforms have become the latest means of executing financial decisions. These platforms help traders make millions of dollars by enabling the latest tools.


And, BitMEX is one such crypto trading platform in the crypto sphere where traders can make use of plenty of trading features which help them stay successful in the global market. Margin trading and leverage trading features of this platform have been helping traders to earn potential profits. BitMEX offers leverage on almost all of its products, with the leverage being higher for the derivatives. Though leverage is no less than a gift for the crypto traders, misusing this feature may lead to reverse results.


BitMEX margin trading

Traders from all across the world exchange millions and billions of dollars on this exchange. This platform is built for active traders in leverage and margin trading. The leveraged trade contracts facilitate the execution of trades more efficiently on BitMEX.


Leverage/margin refers to the funds which the traders may borrow from the exchange to trade crypto assets. The BitMEX exchange will lend you funds to place a trade and takes back those funds after you exit the trade. Here the trader will keep all the profit. The exchange offers up to 100x leverage on its trading products.


Let’s understand about BitMEX leverage with an example:

Suppose you have $100 in your trading account, and you want to buy BTCUSD perpetual futures. If you choose 100x leverage, you will be enabled to take a position 100 times your trading amount. Hence, you can place an order worth $10,000. If the position which you take moves 1% in your direction, then you will earn $100 as profit. But without leverage, it will be just $1.  


So, using leverage means you can multiply your profits by 100%. But, using leverage can also increase your exposure to loss just like profits. If you trade with $100, and the position moves down to 1%, you will lose only $1. But, if you trade with leverage, the loss will be $100, and you will lose your entire amount.


Hence, it’s crucial for a trader to use the leverage properly. The leverage offered by BitMEX exchange depends on the underlying assets. The assets provided by the trader would work as a guarantee for the funds borrowed on the exchange. Understanding this is quite essential for a trader to know how margin trading behaves. When you are opening a position on the exchange, there will be a threshold in which the trade would remain open; however, the position could get executed if the crypto market crosses that threshold. This is known as the liquidation price.


Or we can say, this is the price at which your account balance or the amount of funds you are using is completely wiped out if the trade goes in the opposite direction.


Another example:


If you have invested $100 in the crypto market with 25% leverage at a BTC entry price of $7500, then the liquidation price here will be $6002.

BitMEX provides its traders with a user-friendly calculator on the exchange itself which helps them calculate their liquidation price, profits, losses, and more. This platform offers the possibility to trade with leverage to the traders.  


How does BitMEX margin trading works?

Margin trading has become a tedious concept among crypto traders and if done properly with the right analysis, trading with margin will offer good returns. Trading on BitMEX is quite different from that of any other platform as these platforms allow you to trade directly to buy or sell coins. But on the BitMEX exchange, you open a position whenever you think the price will increase, and you will gain the price difference as your profits if the trade goes successful.


However, trading with leverage is not suitable for everyone, so it’s important for a trader to trade with caution so as to avoid losses. BitMEX exchange platform offers contracts on a wide variety of crypto coins including Bitcoin, Ethereum, Litecoin, Qtum, Ripple, Zcash, etc. The exchange platform regularly changes and updates the contracts available and therefore, it’s important that if a trader is interested in a particular cryptocurrency, it makes sense to check the current platform offering in that asset. 


Let’s understand how margin trading works on the BitMEX exchange with an example:

If you have 1 Bitcoin (BTC) to trade and you use 10:1 leverage, then you will be able to trade with 10 BTC instead of one. And, if you have 1 BTC and you use 100:1 leverage, you have the possibility to handle 100 Bitcoins instead of just 1 BTC.


Reasons why pro traders prefer BitMEX margin trading to other platforms?

  • Lower fees
  • User-friendly
  • Security 
  • An easy-to-handle user interface
  • All professional features provided
  • Trading engines work well without any glitches


How to leverage trade on BitMEX?

So, you want to trade with leverage on the BitMEX exchange. Follow these simple steps:


  • Register for a BitMEX account on the exchange- Go through the BitMEX website and register for an account by providing your email address and creating a password in the box at the right of the screen. After registering, make sure to enable 2-factor authentication to provide an increased level of security for your account.
  • It’s time to deposit funds into your account- Click on the ‘Account’ tab available at the top of the screen to be taken to your wallet on the exchange. Click the deposit button now. For this, you can either scan the QR code or copy your wallet address there. It’s time to use that address to deposit Bitcoin into your BitMEX account.
  • Navigating through the trading screen- Click on the ‘Trade’ link present at the top of the screen. Click on the tab of crypto coins which you want to buy or sell.
  • Enter the details of your position- Now you will see the order box, here you have to select the type of order you want to place. Suppose you are using a market order. Enter the amount for which you want to buy or sell your assets in USD.
  • Set up the leverage amount/value- Use the slider present below the order box to set the desired level of margin/leverage for your position. You can set leverage of up to 100x.
  • Review the transaction details- Take your time to review the full details of the transactions done. Here you will see the ‘quantity’ tab which shows the value of your position. But, as you are trading with leverage, the money you are putting at risk is quite lesser. The ‘Cost’ field here will detail the maximum amount which you can lose on the position if the market moves against you. ‘Order Value’ here will show the value of your position in Bitcoin (XBT).
  • Open your position- If you think that price of the asset will increase and you are going ‘long’ on the trade, simply click on ‘buy market’. If you are going ‘short’ as you think that the market will fall, make sure to click on ‘sell market’. Here you will see the order confirmation screen containing information such as order value, cost, the estimated liquidation price, and the level of leverage.


Whenever you place an order/trade which is yet to be filled either on TrailingCrypto platform or BitMEX exchange such as a limit order or stop order then it will appear in the Open Orders Tab. So, trading on BitMEX is a simple task. You can quickly place buy or sell orders here by clicking on the place order tab under the trading dashboard. 


Trading on BitMEX

Follow the below steps to place an order:


  • Visit the margin trading tab.
  • Enter all the required details.
  • Click on buy to go long, and sell to go short.
  • Order will be executed depending on your set options.


Is trading on BitMEX safe?

Of course, yes! This is highly rated and one of the safest exchanges to trade with leverage. It has several safe trading features and provides bank-like security with advanced safety measures. The customer's assets are stored in cold wallets and during trading, it uses multiple protection layers. Additionally, this implementation is also validated with the 2FA process.

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About Trailing Crypto Advanced   cryptocurrency experts

28 connections, 0 recommendations, 134 honor points.
Joined APSense since, July 8th, 2019, From Gurgaon, India.

Created on Sep 21st 2023 08:42. Viewed 95 times.


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