This exchange was founded in 2014 but started gaining popularity in early 2018 when the ability to earn on a price decline was more relevant than ever. At the moment this is the leading exchange for margin trading, not only because of the largest number of members but also due to the highest level of liquidity.
Despite this, however, it is the biggest crypto margin exchange, very often its behaviour doesn’t correspond to its title: regular overloads and horrible lags became normal for this exchange users.
BitMEX allows us to trade 8 different crypto-currencies. Here is the list of them: Bitcoin, Ethereum, Litecoin, Ripple, Cardano, Bitcoin Cash, EOS, Tron.
Talking about fees, there are two types of commissions: “maker” and “taker”. “Maker” is used when a trader makes an order, and “taker” when it is executing.
When you use perpetual swaps, every 8 hours between traders funding processed — someone pays money to you or you have to pay. If you play “short”, while most of the traders hold “long” — then they pay you. If you are in the “long” as the majority, then you pay.
|Leverage||Maker Fee||Taker Fees||Settlement Fee|
|EOS Token |
After the order is executed, info about the open position appears at the bottom of the page [6 point on the screenshot of the interface].
Addition. To close a position, you can place an order of the same volume, but instead of a short-long, and vice versa. You can SHORT for $500, and when the price falls heavily, put a LONG for $1000. When a $1000 order is executed, a short position of $500 will close and long for $500 open.
• Limit order — this is the classical type of buy/sell orders that we set below/above the market price. For example, the market price is $8787 and you want to buy some XBT, you put the order at $8700 and as soon as price reaches this level — your order will be filled. “Quantity” means how much contracts you want to invest in the position.
• Market order — for example, you want to be 100% sure that the train won’t leave without you. In this case, you should open the market order. The meaning of it is the same as the limit order. The only difference is that you open a position for the current (!) Market price. Market orders are executed firstly, only then limit orders.
I don’t recommend this type of order. If you want to take profit- you can put the limit/market order for an opposite kind of position. For example, you opened LONG at 6900$ for 100 contracts. Price reached 7100$, and you want to close your LONG position for the market price. Just open the window “market” and SELL the needed quantity of contracts.
• Stop Market (Stop loss) — is an order that automatically closes your open position in a small loss as soon as the price reaches trigger price. This type of orders works in the same way as on the others exchanges.
• Stop limit — This type of order can perform two tasks. The first task is to put a Limit Order for LONG for a price higher than the current one. For example, you want to buy BTC when it breaks through a significant resistance level which is above the current price. Then you put a limit stop order. In other words, the difference between the Limit Stop Order and the Limit Order is that you can buy an asset at a price higher than the current one. The second task is to put a Limit Stop Order for a price lower than the current one. This type of order is used for sale at a price below the current one. Usually, such type of orders is placed in the case that you expect a breakdown of an important support level.
• Trailing stop — This type of stop is very similar to Market Stop, but has one advantage. For example, you think that the price will go smoothly to $9500 and don’t want to lose this profit along the way. Current market price is 8700$. You open the position with a market order (buy) or limit order just below the market price.
After the execution you set a Trail Stop Loss: set the number of contracts and trail value(example $150). After setting this stop, the order will go up with the market price, but on a distance equal to your trail value. So, for example, if the price went to the mark of 8900$ — the trail stop loss would be located at the 8750$. If the price reaches $9200 and goes down, the order will stop at the specified price (9050$) and in the case of a touch it — will close your position. If the price sharply goes up, then the order will follow it too and will be closed by the same principle, when the market “returns” back.
I advise you to put a trailing stop only in a case that you already have an opened position, not just a limit order. Another key moment: If you have opened LONG position, then put a “-” sign in the column of trail value. In a case of SHORT position- “-” isn’t needed.
It is crucial to check “Close on Trigger” option if you use Stop Orders. What does this thing do? This is the initiation of an order only if you already have an opened position. Otherwise, if you don’t have an opened position, but on some of the limit orders there is a “Close trigger”, then when the price reaches the Market Stop price, your limit order won’t be executed.