A Complete Guide for Margin Trading on BitMEX

BitMEX is known to be the market’s leading crypto exchange that offers advanced trading solutions for traders. Read on to know more about the BitMEX exchange.

The Bitcoin Mercantile Exchange, often known as BitMEX, is one of the world’s biggest Bitcoin brokers for margin trading. BitMEX exchange offers up to 100x leverage for traders to optimize their trades with minimum capital. However, the platform is best for advanced traders who understand the risk to reward ratios.

BitMEX Exchange Introduction

BitMEX comes with some special features making the broker one of the most popular ones due to its liberal policies.

BitMEX comes with some Unique trading options, which makes it popular among the trader’s community. Traders enjoy the flexibility to withdraw their rewards and gains without any restrictions. Moreover, BitMEX exchange comprises an innovative trading engine that offers multiple advanced order types a seasoned trader needs. The best aspect of this trading platform is its easy and anonymous sign-up.. To sign up, all you need to provide is just an email, password, name, and country of residence.

The most important thing worth stating here is BitMEX’s high liquidity. Moreover, the platform has a strong trading engine that enables fast financial transactions.

BitMEX Leverage Trading

BitMEX is one of the renowned platforms offering margin trading services with maximum leverage percentage. The user can select the desired crypto asset from the board and can go long or short. This trading platform employs two methods of margin trading, which are enlisted below.

BitMEX Cross Margin: BitMEX cross margin enables a trader to utilize their entire account balance in order to resist any liquidations. In some circumstances, traders can lose more than their initial margin for a specific position; however, it mitigates the risk of getting liquidated.

BitMEX Isolated Margin: In this medium of margin trading, the user only risks the selected initial margin, which means in case of liquidations, your account balance is not used automatically. It keeps your account balance safe, but it doesn’t protect user position from getting liquidated in case of negative market movements.

BitMEX Perpetual Contracts: These contracts are just like traditional futures. A perpetual contract permits the user to make a trade on same reference index price of underlying crypto assets that are utilized in spot markets. Note that the perpetual contracts do not settle or expire; however, these contracts are subject to an early settlement.

Inverse perpetual contract: These contracts are suitable for users who desire to go short or long on BTC against USD. Taking an example, XBT/USD is said to be an inverse perpetual as the underlying crypto asset is USD/ XBT. In case if the underlying crypto asset price moves in a negative direction in inverse perpetual, then the user may suffer a higher loss because of the contract’s inverse and non-linear nature.

BitMEX Fees Structure

For each trading option on BitMex exchange, including perpetual contracts, Quanto futures, or traditional futures, the fee schedule is different.

Every supported crypto asset on this trading platform entails a different margin and a different taker, maker, and settlement fees. Suppose you are running a Bitcoin perpetual contract with 100X leverage, then you are charged with a -0.025% maker fee and 0.075% taker fee for long and short funding of 0.0031%. However, the fee percentages are not absolute and may vary according to platform and market conditions.

At last, the platform does not charge any fees on user deposits and withdrawal of Bitcoin. Although, if users transfer funds between accounts, then traders are required to pay a fee that is set automatically by the blockchain network.

Tip for Selecting Ratio of Leverage on Trades: If you opt for high leverage, BitMEX liquidation price will get close, and your margin will be completely lost. In simple words, the more leverage you use, the closer the liquidation price gets.

Also Read: You Find the Lowest Fee Crypto Exchange?

Conclusion

For traders looking for a smart solution for margin trading, BitMEX is a one-stop exchange for all your trading needs. This platform offers the opportunity to develop trader’s investment portfolios from uptrends and downtrends of the crypto market. BitMEX exchange has attained popularity among advanced traders because of its advanced trading options and healthytrading volume. BitMex is a compatible exchange for users who don’t want to risk too much. However, the platform UI is slightly complex, so do your research and gain some experience before trading crypto on BitMEX.