OFFICIAL BITMEX TRADING GUIDE

I will go over the basics of how trading works within this post, since a lot of new people end up losing a lot of money due to simple misunderstandings.

Disclaimer: I do include a link at the end for signup that helps you (10% off on fees) and helps me due to earning potential commission. I'm completely transparent about this, and will also answer any questions about what may have confused you.

Okay, so you can either long (bet that the price will go up) or short (bet that the price will go down). Leverage allows you to borrow more money that you can trade with. For example, if I choose to trade on 25X leverage, a 1% increase will net me a 50% gain, but a 1% decrease will net me a 25% loss (hence why high leverage is very, very risky).

Now, when you're actually about to go long or short, you have to put in the number of contracts (where each contract represents 1 USD) AFTER leverage. So for example, suppose you have 0.05 BTC, and you want to go long at 2X leverage. This means that the number of contracts you put in is 10200 (current price) * 0.05 (amount in BTC) * 2 (2X leverage) = about 20,400 contracts.

Link for 10% off fees: bitmex.com/register/fy7WQb

How LIQUIDATION works: Continued under this thread...

Before explaining how liquidation works, you need to understand three terms: trading price, index price, and the mark price.

The trading price is simply the price it's being traded at on Bitmex.

The index price is usually an average of the price on Gdax and Bistamp.

The mark price is a price similar to the index price but takes into account wild fluctuations. For example, suppose the price is at 11,700 and drops to within 11,200 (happened within 2 minutes yesterday). Although the trading price will move VERY fast, the mark price will be delayed.

Liquidation is based on the MARK price. If the mark price reaches your liquidation price (this is approximately a 1% movement against you if you're on 100x leverage, a 2% movement against you if you're at 50x leverage, a 10% movement against you if you're at 10x leverage, etc), your position gets liquidated. In other words, you lose all the money you put in. They will always tell you exactly what the liquidation price is as soon as you start trading.

Recommendations: Simply put, and personally in my opinion, do not do high leverage trades. It's simply not worth it. With the wild swings that have been going on lately, it can be a recipe for disaster. Although you have the ability to put stop losses, it can get extremely risky, and I have seen people lose north of 5 BTC all in one go.

Before starting a trade, the "cost" that will be displayed under the long or short button, is the amount of BTC you actually will be spending, and you can never lose MORE than what you put in. In other words, you will not be in a situation where you may owe BTC to the exchange. This is a very, very key point that people miss, so be aware of this.

hypothetical.

I go short at price 10k at 100x
I buy one contract
the price goes to 9k

I close and make 100k?

What happens if it 11k's

Okay, so first and foremost, when you short you're selling, so you'll be selling one contract. Everything you make is in BTC.

Now, if you sell one contract, you're shorting $0.01 worth of BTC (not $1 worth of BTC). If you want to short $1 worth of BTC, you put in a sell (short) for $100 worth of BTC (I'm presuming this is what you meant to ask).

So if you short $100 worth of BTC, about (0.01 BTC), and the price goes from 10k to 9k, the price dropped by about 10%. Each % in 100X leverage basically increases your gain by 100%. So, your gain in this case will be about 100 * 10 % = 1000%.

TL;DR You will make 0.1 BTC from 0.01 BTC.

at 100x if the price goes up 1% on a short u get liquidated.

so at 10k if it goes up to 10100 ur out.

Referal link posting is forbiden by the rules, I suggest you report op

can u close a losing position early to avoid getting just'd?

if i use 10 btc and go 10x long, will it be impossible for me to be liquidated?

wondering this aswell, how the closing works

Yes, you can close a position at ANY time. There are two ways to close positions.

First, in the bar below that tells you your active positions you can put in an order to close it at the price you want. You can also use the trading UI to put a buy order (in the case of a short), or a sell order (in the case of a long) at the price you want.

However, I recommend you to always put a STOP order every time you trade, because sometimes the price can move so fast and you don't have time to react. You can put a stop limit or stop market order but I would recommend a stop market order in order to avoid making it not hit the stop price and be left with an open order. This incurs a bit more fees but it's much, much better than getting JUST'D (happened to me a few times where the stop price didn't trigger)

Just to expand on that, you can say "hey, if the price goes below 10,100 sell at 10,099 because that's too many losses for me" (stop limit), but that can sometimes lead you not to be able to sell since it can go past 10,099. You can also do (what I usually do) a stop market order where it basically means "hey, if the price goes below 10,100 sell at market price because that's too many losses for me"

if you make a shit trade at 100x leverage you won't have much time to close also closing at a loss will multiply your losses by 100x

also OP is a referral fag

One correction in my original post. I wrote:

"For example, if I choose to trade on 25X leverage, a 1% increase will net me a 50% gain, but a 1% decrease will net me a 25% loss (hence why high leverage is very, very risky)."

It would net you a 25% gain, not a 50% gain.

SOMEONE EXPLAIN TO ME WHAT DARKTRIP DID

IN SIMPLE TERMS

I was told he made nearly 100K with just a couple of Bitcoings

It depends on how much he put in, but from that post, it says he did a 30x trade at 11,666. This means that for every percentage the price decreased, he made 30% on the amount he put in. At it's lowest point (as of now), it went down to about 10,200. IF he closed his trade at that price (which occurred today so not sure), but if he did, then the price would have changed by about 11%. 11*30 = 330%. 2 BTC on 330% is about 8.3 BTC. 8.3 - 2 = 6.3 BTC = about 65-75,000 as of now

If the price does a nice drop to let's say 6K, he would make about 32 BTC.

Yeah this is similar to what I heard - didn't sound right at first but now I see.

how long can you keep a short open? It doesnt close the moment a green candle shows up?

I want to sign up but not available for burgers.

Do we need to use a VPN? Would VPN be only for signup, or every time we use the site?

Total brainlet here, but would I be correct in assuming that you can keep it open for as long as you want, but if you cancel it without it reaching the price you specified you'd lose the amount the percentage multiplier increased by?

Global rule 11

Advertising (all forms) is not welcome—this includes any type of referral linking, "offers", soliciting, begging, stream threads, etc.

Leverage trading or you could just give your money to me. At least then you won't waste your time. Same result though, money flushed down the toilet.

Do you have to use USD to trade with?

You can close at any time to take your profit for how far it dropped (or went up in the case of a long) afaik
U haven't used bitmex though, so let's wait for another user to confirm.

Ok ignore my previous question. Anyone know if youre allowed to take profit at less than 1%?

Lets suppose I called the top correctly yesterday and close my long at $11700 or so. Does this imply that immediately I'm opening a short? Or this is a different process? I mean, if I'm highly confident that the price will fall under 11.7K not only I will close my long, but also would like to open a short. Could this be automatic somehow? Thanks!