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
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.
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
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
- An easy-to-handle user
- All professional features
- Trading engines work well
without any glitches
How to leverage trade
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
- 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
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.
Created on Sep 21st 2023 08:42. Viewed 95 times.