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BitMEX

BitMEX is a peer 2 peer (p2p) cryptocurrency trading platform that offers users the ability to trade with leverage or margin of up to 100X. The BitMEX cryptocurrency exchange uses Bitcoin as the base currency. This means all profits and losses are calculated and paid in Bitcoin, even while purchasing or selling altcoin contracts. BitMEX is a crypto-only exchange which means users can not use “Fiat” currencies for funding accounts, deposits, or withdrawing.

XBT Perpetual Contracts

Perpetual Contract is a derivative product that is similar to a traditional Futures Contract, but has a few differing specifications:

source – https://www.bitmex.com/app/perpetualContractsGuide

The most traded asset on the BitMEX exchange is the Bitcoin Perpetual Contract – XBTUSD

These contracts are created to mimic a margin-based spot market, with the goal of trading close to the underlying reference index price. The main determining factor in spot price is a mechanic called “Funding”.

When trading these types of leveraged positions a trader must consider the following:

  • Position Marking – These use the Fair Price Marking method to determine the mark price. The Mark Price in turn determines profit and loss values as well as liquidation prices.
  • Initial & Maintenance Margin Levels – These levels will determine the amount of leverage a user can trade with, as well as the price point where liquidation would occur.
  • Funding – Payments exchanged between buyers and sellers. These are scheduled at 8 hour intervals. If the funding rate is positive, it will require long positions to pay shorts the current rate, and vice versa for negative funding rates.

Margin Trading Using BTC

BitMEX offers leveraged trading up to 100X on some assets. This means that investors are able to buy as much as 100 Bitcoin Contracts using only 1 single Bitcoin to back the investment.

High leverage can mean high profit for investors, but the risk for high losses and liquidation increases as well. Be sure to understand how margin trading works before investing in contracts with high amounts of leverage.

Ready To Start Trading Cryptocurrency Using Leverage?

Create Account At BitMex

Click the button below to create a free BitMex Account

BitMEX contracts are a great way to trade cryptocurrencies using leverage. Many investors are using small positions with large leverage to earn massive amounts of profit using the BitMEX platform. Wether you are long or short, using the BitMEX leverage options, you can increase your profits using small amounts.

Our readers can trade for less! Use our link for a discount on trading fees! Just follow the button below!

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