Trading cryptocurrencies has become the latest trend among traders which helps them to earn instant profits. Depending on the kind of strategy and competency level, trading crypto assets can be highly rewarding as well as risky at the same time. The crypto trading market is identifying the latest tools, methods, strategies, and innovative tools for traders. All this has made the crypto trading sphere more interesting. One such interesting feature attracting traders a lot is trading with leverage.
Leverage or margin trading is a popular technique used by crypto traders on the BitMEX exchange. The traders choose this technique to boost their trading value by borrowing money based on the trader’s assets. The third-party trading platform, TrailingCrypto offers the best trading features to help traders trade with leverage on BitMEX. This is one of the most recognized and advanced trading platforms allowing traders to perform margin trading.
BitMEX offers leverage on almost all of its products, with the leverage being higher for the derivatives. Though misusing the trading with leverage may lead to losses for the traders, it’s better to use this feature wisely.
Let’s understand margin trading and its benefits:
Traders from all across the world exchange millions and billions of dollars on the BitMEX exchange via its useful trading features and trading bots. This exchange is designed for active traders who want to double their profits using the margin trading feature. Margin trading refers to the funds which the traders may borrow from the exchange to trade Bitcoin or other assets.
Do you know how margin trading works on this exchange? Let’s understand this with an example:
Suppose you have $500 in your trading account, and you want to buy BTCUSD perpetual futures. If you choose 10x leverage, you will be enabled to take a position 10 times your trading amount. Hence, you can place an order worth $5,000. If the position which you take moves 1% in your direction, then you will earn $50 as profit. But without leverage, it will be just $5.
So, using leverage means you can multiply your profits by 10%. But, using leverage can also increase your exposure to loss just like profits. If you trade with $500, and the position moves down to 1%, you will lose only $5. But, if you trade with leverage 10x, the loss will be $50, and you will lose up amount. And, if you trade with 100x leverage, then you may lose the entire amount.
Hence, it’s crucial for a trader to use the leverage properly. The leverage offered by BitMEX exchange depends on the underlying assets. it is a very risky trading method considering positions can be liquidated very fast.
Let’s understand this with another example:
Traders could start trading on the BitMEX exchange with 2:1 up to 100:1 leverage. That means if you have 4 Bitcoin (BTC) to trade and you use 2:1 leverage, you will be able to trade with 8 BTC instead of one. If you have 4 BTC, and you open a trade with 100:1 leverage you will have the possibility to handle 100 BTC instead of just 400 BTC. The assets provided by the trader would work as security or the guarantee amount for the borrowed funds. This is very important at the time of trading assets that how margin trading behaves. Trading with leverage is not suitable for everyone, so it’s important for a trader to trade with caution so as to avoid losses.
If you want to trade on BitMEX exchange with margin, trading via TrailingCrypto will be the right tool for you. With TrailingCrypto, the traders will also receive the most accurate trading signals in the market. Register with us to receive the best signals and don’t miss a trade anymore.
Features of BitMEX exchange
BitMEX has one of the best trading engines in the world. Orders on this exchange are executed quickly and easily without any kind of time lag systems. Some of the most popular features of this platform that attract traders are:
- The exchange offers leverage trading on Bitcoin up to 100x leverage
- High liquidity futures contract
- It offers futures contracts allowing users to trade Bitcoin derivatives at a predetermined price
- There is no expiry date on perpetual contracts and trading futures
- It offers a profit and loss calculator to help traders assess the risks involved
- State-of-the-art crypto trading and pricing APIs
Crypto trading bots on BitMEX
As we all know very well that BitMEX trading platform offers various advanced features for the traders, so it could be difficult to establish a winning trading strategy easily. Fortunately, making use of crypto trading bots on this exchange via TrailingCrypto can help you out. These bots will automate your trading strategy as these are programmed with some preset strategies. A properly configured trading bot for BitMEX may perform the following tasks:
- Smart order routing
- Investment rebalancing
- Better and efficient portfolio management
- Market data collection
How can I trade with leverage on BitMEX exchange?
So, you want to trade with leverage or margin on the BitMEX exchange. Make sure to follow these simple steps:
- Firstly, register onBitMEX– Go through the BitMEX website and register yourself by providing your email address and creatinga password in the box at the right of the screen. After registering, make sure to enable Two- factor authentication to provide an increased level of security for your account.
- Deposit funds into your account– Now, it’s time to click on the ‘Account’ tab available at the top of the screen to be taken to your wallet on the exchange. Now click the deposit button and deposit funds.
- Navigate through the trading screen to place trades– Click on the ‘Trade’ link present at the top of the screen on the website. Click on the tab of crypto coins that you wish to buy or sell.
- Enter the details of your position– Here you will see the order box, where you have to select the type of order you want to place. Suppose you are using a market order for sell. Enter the amount for which you want to sell your assets in USD.The same is for the buy order.
- Set up the leverage amount/value– After entering the position, it’s time to use the slider present below the order box to set the desired level of margin/leverage for your position. You can set leverage up to 100x on this exchange.
- Review the transaction details– After setting the leverage; make sure to review the full details of the transactions done. There is a ‘quantity’ tab which shows the value of your position. But, as you are trading with leverage, lesser money is at risk. Now go through the ‘Cost’ field where you will enter the maximum amount which you can lose on the position if the market moves against you. Here the ‘Order Value’ will show the value of your position in Bitcoin (XBT).
- Open your position– If you think that the price of the crypto asset that you are trading will increase and you are going ‘long’ on the trade, simply click on ‘buy market’. If you are going ‘short’ as you think that the market will fall, make sure to click on ‘sell market’. There will be an order confirmation screen containing information such as order value, cost, the estimated liquidation price, and the level of leverage.
Trade like an expert via TrailingCrypto
So, you are a novice trader and want to improve your trading skills? Or you are an expert and you wish to confirm whether your moves are accurate or not? Trading via TrailingCrypto is the right tool for you. The platform offers trading signals which are the most accurate ones in the market. Check it out and improve your trading strategy while using BitMEX.