Trading on Bitmex is quite similar to trading on any of the major platforms. Instead of international currencies and derivates, you will trade on cryptocurrencies like Bitcoin, Litecoin, Bitcoin Cash and a select few other currency pairs.
In this article, we will show you how to navigate through their system and buy on Bitmex.
Former bankers and mathematical programmers came together to create Bitmex. They have designed the system to function similar to a Bloomberg terminal. So it can be very daunting for a beginner. In fact, if you are a beginner, don’t even think of trading on Bitmex. Trading on highly volatile cryptocurrencies is risky if you don’t have enough experience.
You could lose your life’s savings in a second. So, unless you have some experience in trading forex or derivatives, stay away from experimenting on Bitmex.
After you sign-up for Bitmex, you have to send your risk capital or play money to your Bitmex account. Funds confirmation can take anywhere from 10 minutes to a couple of hours based on network load and network fees you’ve agreed to pay.
Once the funds show up in your account, you are ready to place orders. You can use the highest leverage when trading on XBT and lowest when using smaller currencies like TRON, LTC or XRP.
You can place a market order to buy a contract on the existing Market price or opt for a Limit order. In a limit order, you specify the minimum or maximum price you are willing to buy or sell. While market orders are executed immediately, they execute Limit orders only when the price conditions are met.
So you sacrifice the guarantee of execution when using a limit order. But you will have a price advantage since you decide the rate at which you buy/sell.
You can also put a stop order to buy/sell when the price reaches a trigger point. By using the Stop order, you can minimise your risk when the price moves against you. You can also use the Stop order to enter the market at a more favourable price level.
The principles of order are very similar to the traditional stock and forex markets. In this case, when you are using margin for trading, your maximum exposure is the initial margin you put up. For example, if you put an initial margin of $1000 in a trade, that is the maximum you can lose.