Bitmex Guide

In this Bitmex guide, we are going to explain you how to use this crypto exchange. The Bitcoin Mercantile Exchange is the #1 Bitcoin margin trading broker in the world. While some other major brokers also offer leverage, BitMEX is outstanding: The broker fulfills the wildest dreams of real gamblers with up to 100x leverage. Of course, however, the platform mainly serves serious traders who know precisely the correct amount of leverage to be used in their trades, upholding fair risk to reward ratios. BitMEX comes with some special characteristics that make the broker one of the most common because of its liberal policies.

Traders are able to cash out their earnings without any limitations, which is a feature not offered by every broker. In addition, BitMEX has a highly professional trading engine providing all sorts of advanced order types that might be required by a professional trader.

Bitmex Beginners Guide

BitMEX comes with some special characteristics that make the broker one of the most common because of its liberal policies. Traders are able to cash out their earnings without any limitations, which is a feature not offered by every broker. In addition, BitMEX has a highly professional trading engine providing all sorts of advanced order types that might be required by a professional trader. 

Step 1: How to Register on BitMex

To use BitMex, you need to create a personal account on the platform. You must at least be up to 18 years of age. In case you don’t know how to register on BitMex, all you need to do so is your email address, which must be an authentic one to enable you to receive a confirmation email. This is a necessity for verifying your account.

Step 2: How to trade on the BitMex 

Knowing how to trade on BitMex is very convenient. As a registered user, your account needs to be signed in first. Simply go to the login page and, if you have enabled it on your account, add your email and password, including the 2-factor code. For this, you can use Google Authenticator or Yubikey OTP.

Step 3: How to buy coins on Bitmex

Go to the ‘Place Order’ box to purchase a coin. You can sell at the current market rates using the ‘At Market’ tab. With the options of Limit and Stop, you can buy/sell at the levels you think about (if the market gets to those levels).

What Is Bitmex?

BitMEX is a trading platform that, using only Bitcoin, provides investors access to the global financial markets. BitMEX is developed with over 40 years of cumulative experience by finance practitioners and provides a robust API and supporting resources. HDR Global Trading Limited is owned by BitMEX. The founding team set up 100x, a holding company building on the success of BitMEX, to follow a wider vision to reshape the global digital financial system into one that is inclusive and inspiring.

Crypto Exchange

A company that allows clients to swap cryptocurrencies or digital currencies for other properties, such as traditional fiat money or other digital currencies, is a crypto exchange, or a digital currency exchange (DCE). Exchanges, in exchange for digital currencies or cryptocurrencies, may accept credit card payments, wire transfers or other types of payment. A cryptocurrency exchange may be a market manufacturer who usually takes the bid-ask spreads as a service transaction commission or simply charges fees as a matching site.

How to Use Bitmex?

BitMEX trading is a bit different from trading with other brokers. You exchange the coins directly in your account on other “real crypto brokers” (meaning no CFD brokers)-meaning when you execute orders you buy or sell Bitcoin directly. You can buy Bitcoin from other brokers and you can just keep it in your account, so if you don’t want to, there is no need to sell it again.

Fees – How BitMEX Makes (A Tremendous Amount Of) Money

There are usually two kinds of payments for a trade. Two parties make up a deal. One has made an offer and one accepts the offer from another. The one who makes the bid on a broker platform is simply the one who was first placed in the order book with his order. So if you publish an order that is not instantly filled (limit order), your order is most likely only put in the order book first, waiting for someone to approve the deal.

Maker Fees

If you set limit orders:

-0.025% per leverage

(Negative fees – BitMEX pays you 0.025% per leverage)

5 x leverage = 5 x 0.025% = 0.125

100 x leverage = 100 x 0.025% = 2.5%

Taker Fees

If you set market orders:

0.075% per leverage

(Positive fees – you have to pay)

5 x leverage = 5 x 0.075% = 0.375%

100 x leverage = 100 x 0.075% = 7.5%

How to Sell on Bitmex?

The Initial Margin needed for Selling Orders = (IM * Contracts * Max (Limit Offer Price, Best Bid) * Multiplier). The Commission shall reserve the overall bid price or the best bid for the contract, whichever is greater, for that contract. Based on the final execution price, the actual commission paid will be determined. Due to a market disturbance event or other events or factors, including, but not limited to, regulatory concerns about any underlying coin and/or our intention to ensure an orderly market, BitMEX could decide to settle a Futures or Perpetual Swap contract early.

How to Buy on Bitmex?

In the Trade tab, on the “Place Order” section you can specify the quantity, price and direction.

What is a Bid and an Ask?

A Bid is a standing order where the trader wishes to buy a contract at a specified price and quantity. An Ask is a standing order where the trader wishes to sell a contract at a specified price and quantity.

Does BitMEX have any market makers?

BitMEX has an anchor market maker who continuously quotes large sizes on contracts that BitMEX offers. No special privileges are given to any of the market makers.

How does Bitmex Works?

You open a spot on BitMEX in the direction you think the price will go, in order to collect the price difference as a benefit if the trade succeeds. You are purchasing long (buy to sell higher) or short (sell to buy lower) trade contracts (USD units) and every trade must be closed at some point (your target). BitMEX takes its TradingView map from a very advanced platform on which you can evaluate your graphs, etc. But the displayed map is not a Bitcoin chart, it’s an XBT chart explicitly used for BitMEX, you can check for it as “Bitcoin / US Dollar Perpetual Inverse Swap Contract” or just “XBT / USD” on TradingView and search for BitMEX in the drop-down that appears. If you do day trading, you can do everything you can do on TradingView in BitMEX, which is very helpful.

Leave a comment