BitMEX exchange – How to Trade Crypto – Tutorial 2018


Hi everyone welcome to our BitMex
margin trading tutorial. I’m Eric from CryptoPotato
it is important to note
that margin trading is considered very
risky so you should trade only with
caution and on the amount you afford
to completely lose. The biggest advantage
of margin trading is that we can
actually leverage our position without
the need to hold the required bitcoins
or crypto assets. In the crypto world it
is not recommended to hold large
amount of bitcoins on an exchange, better
to hold them only on cold storage
another advantage is that the exchanges
allows us to make short trades – it means
profit when Bitcoin goes down. That way
we can hedge. So let’s start: as you can
see on the right side we see the last
transactions made. In the middle we have
the Bitcoin graph and this is actually
the last Bitcoin price. The left pane is
the most interesting one, here we open
our position. the quantity is the
position size in US dollars, the limit
price is the price we set in order to
open our position. buy and sell I will
talk in a minute. The cost is the total
price of the position. Order value is
the total value of the position. It means
if the leverage is set to 1 means there
is no leverage then it’s equal to the
cost minus the fees. this is the this is
now what is happening – you see
24 milli-bitcoins on each of them
available balance is the balance we have
in Bitcoins. before opening the position
we will define the leverage. If this is
your first rate I would recommend
leaving it on 1:1 that is with no
leverage at all. We will open a sample
position – now we will set the quantity to
be 100 dollars so what happens we will
update the price according to the
market
so we see now the price is around
4050 dollars so in case you want to
open the position immediately we set
the price to be little bit higher and
then the actual price so we set here
to be 4060 USD. Now we’ll make it a
little bit interesting, we will define
the leverage to be times 5 then we will
expect the cost of the position to be
reduced by the same ratio so let’s see that.
now that the cost of our
position is 24 milli-bitcoins so now
I’m moving the leverage to times 5 then
you see that the cost is only
4.9 milli-bitcoins and again now
the cost is 24 and we do it again
we see that the cost is reduced by the
same ratio. This basically allows us to
trade on bitcoins we borrow from the
exchange. Keep in mind the higher the
leverage will be the more we will have
to borrow from Bitmex and therefore the
fees will increase. another thing you
need to know about is the liquidation
price – this is the price value at which
bit max will close the position or
liquidate it. BitMex can’t afford to
lose and in order not to lose the money
we borrowed. Our position
will automatically close once
we lose the amount of bitcoins that
belongs to us. So let’s open the position
we do it using BUY means long position
when we believe that the value of
Bitcoin will increase, or SELL, short
position when we actually benefit from
the decrease in the bitcoins value. We
believe in Bitcoin so we will go for a
long position. We will set the buying
price to be higher than the market price
like I mentioned before. I see that the
price is going up
now so let’s make the price like
4070 USD
well now after open the position you see
see the screen we need to
confirm the position, notice we can see
when Bitmex is estimated to
liquidate the position
so if Bitcoin drops around 3400
something like this then we will
completely lose our $100 and then BitMex
will close the position. So let’s
let’s buy and confirm the position now
This is your our position, we have here the
entry price you see and
realize PNL so this is the loss or
the estimated profit and it’s calculated
according to the to this Mark Price
it will be calculated later. we also see
the real liquidation price it’s here
it’s a like the estimated one but a little bit less
in case a we close
part of the position then we will see
the gain or the loss in the realized PNL
here. When the time comes we have two
ways to close the position: the first is
by setting a sell command – suppose we
want the position to close at let’s say
4200 something like this
then we set the same command but
the inverse command. So let’s say, let’s
do it 4200 we set the
sell command, we approve it and then we
have it here in the active orders. As
long as bitcoin stays and doesn’t touch
touch 4200 then we will have
this active order
the second option to close, if you want to close
position immediately there is this red
button and which says Market on it
the order would be released to the
market and it will close the position at
the best available price. In our case
this is what I’m going to do because
I want to sleep tight, so let’s close now
the position. OK, that’s it we can see
that in the order history and there see
the total profit.
there are more advantage options
such as stop limit we can see it here
but this is for the next videos. Hope you
enjoyed and the video was clear, now all
you need to do is open a new BitMEX
account. The link here below gives you a
10% discount on transaction fees for
the first six months. Thanks a lot and
see you in the next videos

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