Bitmex Signals – Where to get them, what to know
Trading cryptocurrencies is not fun right now – you can only buy and hold – and hope it will get up, but what if everything you touch just tanks. For many people, Bitmex becomes teasing more and more to trade the financial market of cryptocurrency, as it offers the opportunity to reap some profits while the other holdings on regular exchanges are dropping. Bitmex is a trading platform, not an actual exchange, which makes an important difference. The liquidity is given We wrote recently about Bitmex and its danger of high leveraging your trades, and want to stress that leveraged trading can zero your holdings in no time – especially if you don’t know what you are doing. So keep in mind every high leverage traded recommendation is a risk for your account, due to the well-known volatility of Bitcoin and crypto in general. The risks are obvious: One your margin is eaten, the trade – in the worst case your account becomes liquidated. You need a trading plan, on when to enter and when to exit the markets to make money. How about if you had a little help from a seasoned day trader and could hire him as a reliable Bitmex signal provider?
BitMEX is a Hong Kong-based cryptocurrency derivatives trading platform that works as a real-time application for potential investors. It operates in many regions such as Japan, South Korea, and Europe, Russia. US Citizens are blocked by an IP ban from using the live platform. Its commission rates vary with each transaction. Bitmex is since 2014 in the game and was the first to launch a leveraged swap contract on cryptocurrencies. In other words, since there is no expiry (on the perpetual contract for Bitcoin ($XBT) ), one does not need to roll one’s position at a fixed point every time – only the future contracts run out.
Table of Contents
- Bitmex Signals
- General Informations about Trading on Bitmex
Finding the best Bitmex Signals
The first thing we found out pretty fast, is that there are near to no good Bitmex signal providers on the market. They are hard to find and way often an outright scam. We’ve thrown out the fishing rod and found a few ones you could trust. These are providers whose channels we are monitoring for a long time and can vouch for their seriousness. As we are subscribed to the regular crypto signal channels for months now, we can say these guys do a good work in general and if we have to trust anyone for a leveraged signal, then this groups would be our way to go. Not all of the listed groups have general trading channels, though – some of them formed out of other channels or are solely Bitmex-focused telegram channels.
No matter you how excited you become to have found finally some reliable Bitmex signals, you should never, never, never use more than 10x leverage even if a provider suggests it– as this can become a trading suicide pretty fast. One thing you might have observed in trading is, that there is nothing like a “dead-sure signal” – things can change quickly – bad news comes in, the sentiment changes suddenly, and the best technical analysis won’t cover your back. Different to normal crypto trades is that you can’t just hold until the price recovers, especially not with leveraged positions, because the leverage works in both sides, so your equity can be eaten pretty fast if the price runs against your direction. So whatever you trade, if you buy or if you sell, if you are bullish or bearish – you should always have a good stop-loss in place and use proper money management and calculate your risk-reward ratio. It is teasing to go all-in if you have a provider you can trust – but they will also fail from time to time – it is like that, no matter what. Personally, we would not exceed 1-5% of the total equity, you allocated for Bitmex. Remember: slow and steady wins the race and there are no overnight riches waiting for you.
So let’s go – here are the best Signal Providers for leveraged Crypto Trades
THE BITMEX SIGNAL REVIEWS
Our Hand-selected List Of Bitmex Trading Groups On Telegram
Constantly Updated Post
#1 Yo Crypto
I spent quite some time in the premium channel of Yo Crypto, a reader has recommended them for the great success he had with them. At first, I wanted to skip it for superficial reasons: a Guy Fawkes image as the logo, the only plan is a one-time fee – as you know we are not a fan of such things. I contacted them anyways for some chit-chat and to see if they appear legit, as we value our reader opinions and we like hybrid channels that offer regular signals as well as Bitmex ones. I was surprised to see my prejudice invalidated. Ronny, the admin, was very friendly and showed quite some knowledge, so I decided to take a look. I found a superb success rate with his Bitmex trades, as well as their altcoin signals. They don’t offer a bloated program of services – you pay one time and get great signals for Bitmex and general altcoins short-term and long-term, along with some Background education, simple as that. We first had this provider in our post about Crypto Signals but decided to move it here, as the emphasis was on Bitmex, we figured. Worked for us even in tricky times!
Their offer in a nutshell:
- Excellent Bitmex Signals
- Very accurate altcoin signals
- Long-term coin picks
Signals Review: The crypto trading signals by Yo Crypto have been excellent for us. Even if you do not want to make use of their Altcoin signals, they’d be still to your advantage. They always have a close eye to Bitcoin and its corny moves and adapt their strategy for altcoin trades. We received signals on XTB as well as altcoins on Bitmex. They often provided a lot of targets, so you can adjust with your risk appetite – we never went in longer than target three, but some will love this. The first three targets hat the best hit rate in our test. Don’t expect daily signals here – there are days with many signals and days with less. This is very responsible as the market dictates the trades, and this is the only right way to do it. If the markets are dull or moving in a weird way, it is better to stay out – however, newbies want to burn their fingers first, before they accept it. Yo Crypto is a good solution for those that like to go both ways: Bitmex and altcoin trading in general. We had a FANTASTIC success rate on each kind of signal and especially the Bitmex trades made us great profits. The signals have been so spot on, we can’t believe it at first – but the market did hit his targets very often super-precise. This indicates a deep knowledge of the markets. We felt very good guided by him, as he monitors everything happening around the corn and updates accordingly if, e.g. news appear which are not in our favor. You might not like that Yo Crypto does not provide the technical analysis with his trades, but we have been super happy with the consistent profits he was able to generate us. After testing his Bitmex signals for about a month, we decided to side with his targets and trade direction, if we see conflicting signals. A very honest person, not cocky or anything with magic fingers when it comes to picking the right trades.
And here is how the trade looks on the chart:
The Results: The Bitmex signals by Yo Crypto have been impressive, he clearly has an edge on this markets. As you can see from the trade example Yo Crypto plays the safe card. Smaller targets, taking profits step by step – this is how it should be done. He just doesn’t go nuts, but basically locks in profits when they are there. In our test phase where we traded his signals, we had not stop-loss hit and locked in some nice profits. There have been also larger gains, than in this example but this is not about advertising to promise you the heaven, but more to show you how responsible trading works. Yo Crypto does an excellent job with that. We have mentioned countless times how dangerous Bitmex can be – not being too greedy pays off! Be patient, follow his rules and the gains should come. And now – drumrolls check out the astonishing results, we checked them one by one, and they are real (updated 5th of August):
Support: Channel owner Ronny is pretty responsive and knows his stuff. While the channel does not offer a chat room for his customers, he usually replies within an hour (depending on the time zones obviously).
Behavior in critical situations: Yo Crypto is obsessed with Bitcoin and observes it carefully to stop providing signals if they anticipate risky moves of corn. They also warned once it is better to get out of alts if you are in a trade short-term (if you don’t intend to hold it anyways, or do not want to get back in with a lower price). Very reliable in critical situations, prefers to play the safe card. He actively monitors the news and delivers trade updates to get out at breakeven if something happens that could affect the success of the current trade.
TRUSTED SIGNAL PROVIDER
➲FACT SHEET for Yo Crypto
3 Months Membership – 0.045 BTC (After -10%: 0.0405)
6 Months Membership – 0.075 BTC (After -10%: 0.0675)
Lifetime access membership – 0.12 BTC (After -10%: 0.108)
If you want to signup, please use this form: https://goo.gl/forms/DHDEn0D1zjRrEEb63. If you entered the discount code, you can transfer the discounted amount.
Signals with TA: No
Trading Timezones: We saw most of the trade in the European trading session, but starting early in the Asian trading session.
Free Signals Channel: To check out the quality of their signals please check the free channel first: https://t.me/Yocryptosignals (no cross promotions)
Testimonial Channel: https://t.me/yocryptotestimonials
How the paid signal channel looks like:
#2 Margin Signals
Margin Signals is trading power from Down Under! The sun seems to have a positive influence on their success rate. A great trader is out to make a great job providing excellent signals for Bitmex and altcoins on top. Mainly they post Bitmex signals, but they don’t refrain to post a good altcoin opportunity which you could take on your Binance or Bittrex account for some extra profits. The free channel gets most of the unleveraged calls and once in a while a margin trade. Right now they offer only margin calls for Bitmex, but soon they will support Bitfinex and also regular Forex calls on top.
In our audit, we saw a strong will to educate their members in the best possible way and to get them trading and learning TA on their own accord. They provide tons of materials to their VIPs like PDFs or calculation sheet for trade tracking, management, risk management, portfolio segregation and various youtube videos. Additionally, 1v1 TA coaching sessions will also be added next month, though it comes with additional cost.
Rob, the trader behind Margin calls, comes from the forex world and has been a full-time trader for just under a year in Crypto and just under 3 years in total with FX. He mainly trades off pullbacks and reversals off-key lines and breakouts of strong continuation patterns.
The trading style is strictly swing trading.
The paid service offers you:
- Bitmex Signals and occasionally unleveraged Altcoin signals. Soon they will have Bitfinex and FX support.
- Personal support by the trader in a chatroom, where all the trades are accompanied by live directions.
- Accurate exit targets and an estimated risk level, depending on the trading style.
- Great Material to have all the needed knowledge to start out with Bitmex. Download their basic trade guidelines here as an example.
Signal Example: An example of a leveraged Bitmex signal and how the trade turned out. Note: This was more one kind of a risky trades. If you decide to take trades of this kind, you should stay available in front of your screen to act accordingly to live instructions. There have been many other more long-term trades. For example, they anticipated the reversal of ETH which gave us a smooth 100% gain, by letting it run for a few days.
Here is the signal:
And here is how the trade has turned out:
Support: They are really great with that and are always there in the chat room to support their members live – no matter if it is about getting out of a trade that turned against them or if the customers need emotional/psychological support. Providing the needed materials and explaining basic things of Bitmex.
Results: We had quite a few good trades here, out of 8 trades we took, 7 succeeded and one failed hard. This is common, as a 100% rate is not possible. It was a trade that has been stated as a risky one and turned against their TA. As things got a bit emotional in the chat room they published a statement about this trade on the next day. We liked their transparent approach and taking the time to explain why that trade failed and how they roll with it. The majority of their trades was pretty successful and not only small scalps, but trades with big-time gains like the anticipated ETH reversal. The signals always contained a clear stop/loss for your risk management and have been live supported in the chatroom.
What we like very much with this provider, that they have a clear track record of their results and tidily keep note of all their trades. Please have a look at their results so far:
Update: While the recent dump left other providers burnt left and right Margin Signals kept his emotions under control and selected only the best signals, hence the good success rate in this overall mess. Very responsible behavior, a top trader that makes his groups nice returns even in the worst times. Margin Signals have much to come in the oven! Soon they will add also Forex signals to their assortment of services.
Trusted Signal Provider
How to enroll:
Contact the CapFive on Telegram to enroll. You can use the discount code “SmartOptions” to get a 15% discount.
$800 upfront per year or
$300 upfront for 3 months, then $88 each month for the remaining 9 months.
All payments are accepted in BTC or ETH.
#3 Bitmex Lifestyle
Recently a friend of Smart Options approached us to check the Bitmex Lifestyle channel and how we would rate them. At first, we have been skeptical about this group but decided to give them a go. We are now with them for quite some time and are pleased that we found them. Trading is always a game of averaging the winners and the losers, and like with the other channels in here, we had both of them with Bitmex Lifestyle. In our testing period, we had 8 winners with profits between 20 to 30%, all targets achieved and two stopped out trades. However, to be fair, one has to say, that the first stopped out trade was an ETH trade, which got stopped by a spike that has been discussed on Reddit, and lifted off immediately after and would have achieved all targets – technically the trade was perfect. The second loser was marked as High-Risk Trade, so we did not take it, but it has to be counted as posted. Fun Fact: While whole crypto twitter was bullish for the weekend, this group had a short signal – which gave us a cute 30% profit. Let’s take a look at the group and who is behind:
@bitmexlifestyle is a channel formed by a team of 4 traders, coming from the conventional financial market and forex, working in crypto-currencies for more than 5 years. They are old-school “metatraders” (MT4Life!) on BTC-e and definitely know their stuff, as I was able to confirm in a private chat with one of their traders. Their focus is on short-term leveraged operations, all pairs in BitMex and they often offer altcoin trades. The free channel gives a nice impression of their work and we can vouch for their paid channel. You get the signals in a very classic format with not too much background information, though the quality was very well, so it is no big deal. The most important thing is that they used a state-of-art risk management, using stop-loss in all operations. Each trade gonna be signalized with a risk factor to suits every portfolio aggressiveness. It might be the wrong place if you want to learn to trade and to educate yourself, but it is the right one if you just want solid signals and execute them, without being able to interpret the charts. The trading style is mostly swing trading with a few scalps in between.
The paid service offers you:
- Between 1 and 5 signals daily.
- Personal support by the traders. If you are in a trade and need help in any kind of matters, you will be redirected by the support staff to a trader, that can help you with your best options.
- Accurate exit targets, which is an important factor with leveraged Bitmex trading.
- A chatroom exclusive for the VIP members with a direct line to traders is in the making
- One cool differential is that Bitmex Lifestyle Team operates only on BitMex, meaning the scalp, short and longer trades gonna have 100% of their attention.
Signal Example: An example of leveraged Bitmex signal and how the trade turned out.
Here is the signal:
And here is how the trade has turned out:
Support: They have always been very responsive and professional with every request. They know how to handle customers, and are very friendly and helpful. They are currently developing monthly reports with tutorials on risk management, emotional control, operation control spreadsheet. From beginner trading to advanced operations, so this kind of support should really help you grow your equity.
Results: As said in the post we had 8 winners out of 10, with a mean profit level of 24% each. 1 got stopped out by an artificial drop, which would have been quite a good one if it developed. They seem to know what they are doing and you can surely have a good roll with this guys if you use proper risk management. Skimming to the prior results we can talk about an averaged rate of 80%+ accuracy in the signals given so far on the free channel and 90%+ on VIP, and that while they are transparent with losses. They don’t pretend that they are able to keep this result forever, as it is inevitable that mistakes happen. My guess is that they will hold a 70-80% success rate in the long run.
Bitmex Signals track their results live in this Google docs sheet, so you can take a look to get an impression of the quality.
UPDATE: Bitmex Lifestyle has recently changed their methodolgy and enters in a laddered way into trades. This had a great success and all results in August have been closed in profit for now.
Trusted Signal Provider
How to enroll:
Contact @LifestyleVIP on Telegram.
Pricing & Discounts:
[30 days membership]
0.035 BTC (-10% if you mention our review)
[6 months membership]
0.11 BTC (-10% if you mention our review)
0.18 BTC (-10% if you mention our review)
• Risk management
• Personal Advisory
• Calls (1 to 5 daily)
• Chat room
- If you mention our review, they are willing to offer you 10% off!
Free Channel: Check out their free channel here and get yourself an impression.
How the channel looks inside:
#4 Cryptonizers’ Bitmex Calls
!CAUTION: THIS CHANNEL IS GREAT – THOUGH THE SIGNAL VOLUME OVER THE LAST MONTH WAS VERY LOW!
This has been by the most advanced Bitmex channel of all tested ones. Cryptonizers, which run a very popular and successful crypto signals channel for quite some time now, hired a professional price action analyst (prior Forex trader), with 9+ year of experience to provide their Bitmex signals. This guy is very down for accurate work and keeps you informed how he places his trades, shows you when he takes which percentage out of the trade and when he closes. He updates his running trades in real-time and it is like you are sitting right beside him. We NEVER experienced such a high level of professionally detailed signals in any other channel. This is not just a go long here and short there, type of signal service but education on a high level, where you will learn by time how a real trader goes through his day trades – it is more like a live trading session, where you follow all of his steps. One thing that stood really out with Cryptonizers was how they supported me after the enrollment. I got a Bitmex starter kit by Cryptonizers with the basics on how to set up a Bitmex account, how to use leverage, etc. Actually pretty much of everything you need to know to start out with Bitmex. Furthermore, I was informed that there will be a chat group soon, where customers can connect. Occasionally Cryptonizers offered videos analysis of trades, strategy teaching and so forth.
What I liked the most, was that they don’t leave you just by giving a trade call. They send regular updates for every single trade until the time it officially closed. The analyst guides very precisely on what to do at every step of the way. Another important thíng they took care of was that they teach you how to calculate the right position sizes and leverage. This is the most often appearing newbie mistake that leaves Bitmex accounts burned, so we recommend to listen closely here. The best trading system is not good enough if it is about the gains in the first place – and not about cutting the losses.
The most important differences between other providers have been:
- Constant trade updates until it is finished.
- Position calculation and leverage consulting.
- Professional trader, trained by Anton Kreil
You can get a picture by the instructions given in the channel. They start at zero and show you how to trade those volatile markets:
Trading is all about management, the only business where you know the risk before (Stop Loss) so, you can turn this game on your favor at any time with your trade and risk management.
•When I write Trade Active you can enter right away.
•But for every trade, I will post my chart that I am stalking. So, you have to prepare yourself to calculate your position size ahead and be ready to join with me within few minutes.
•When I write TP 1 consider taking 20% of the PROFITS. So, if the trade goes in the wrong direction after behind your entry and you want to close also you will be risk-free.
Eg: Long trade Entry: 1000 USD, Stop Loss: 9800 USD TP 1: 1100 USD TP 2: 1500 TP 3: 1800 USD
So if TP 1 hit remove 20% of your profit on your position size and stops remain intact. Now lets suppose if the trade is not moving towards the TP 2 instead its moving towards your entry price which is 1000 USD. If you close your positions also you will be in a little profit. And now if the trade is at 9900 USD a 100 USD above your entry price (opposite direction) if I tell to close the positions also you will be at no loss no profit because you scratched 30% of your position size at TP 1. Technically no Profit no Loss.
•Now let’s take the trade is moving towards the TP 2 when TP 2 hit close 80% of your positions and move your stops to “0” (Break Even) (MUST and SHOULD). I keep TP 2 as 1:1 trade I mean If my Risk is 1000 USD then I will make 1000 USD if TP 2 hit. After moving my stops to break even price, if stops hit (break-even price) also no care because I already removed 80% of my positions and I made a decent profit on my positions. Here I will be making (80 USD) and I will be left with only 20% of my positions aiming for TP 3.
•Now if I see that trade is moving towards TP 3 I will add some more positions to the trade ( not more than the position size what I removed. In this case from the above example 80% or less ) I will mention at that time. If TP 3 got hit I will be all in all profit.
Before entering what you have to do?
•Calculate your position size and leverage based on stop-loss.
•Set an open order for TP1
•Set an open order for 80% of your positions at TP2 ( I hope you will have some time to do this )
•You have to plan all this before.
The trading style is mostly swing trading with a few scalps in between.
Signal example: An example of leveraged Bitmex signal and how the trade turned out.
And here is how the trade has turned out. Please note the precision!
Results: From all providers, Cryptonizers have been the longest around and provided the most Bitmex signals to date. The accuracy is impressive: 13 trades taken in last 14 days. 12 closed in profit and one closed at break even. Cryptonizers offered signals for Bitcoin as well as for altcoins. Short term and long term trades have been available. Very notable is the precision the signals had, which we received. The signal provider is all about responsible trading and a very precise guy. While the chat room has quite some gamblers in it, that want to pressure more, more, more signals the traders remains calm and issues only signals with the highest probability. You can see on the above picture how precise his target is met.
Trusted Signal Provider
How to enroll:
Contact Cryptonizerssupport on Telegram.
Pricing: 0.025 BTC / Month
Free Channel: You can join their free channel and get a daily analysis digest pack of Bitcoin, Litecoin, Ethereum and other altcoins. They recently stepped up the game with video analysis and do fantastic job. You should get it as long as they provide this service for free.
How the channel looks inside:
#5 Verified Crypto Network
These guys astonished us with their precise work and a great network of traders and hand out valuable pieces of education to their subscribers. We reviewed the signals channels some time ago and are still suckers for the service by the Dutch company. Recently they acquired the Bitmex trader CryptoCoffee who enjoys a huge influx of subscribers due to her very successful signal she gave on the social media platform. She now provides her excellent work to the Verified Network. We recommend to choose the Verified Crypto Network if you want mainly crypto signals and in addition some quality Bitmex signals for a leveraged trade here and there. Furthermore, VCN offers trading courses and webinars as well and promote the educational approach mainly – this is for you if you want to profit in the long run as you learn more week by week with them. You can actually learn to trade with them, As VCN is a network of well-versed, seasoned forex traders, with experience in technical and fundamental analysis. They do trend trading as well as betting on reversals and have an extensive background in the financial markets. They give a whole set of different trading approaches for the crypto world, and having the trader CryptoCoffee aboard is a great add-on for all subscribers. As we follow this active trader for some time on Twitter, we are confident that her excellent charting and price analysis will be profitable for your day trading account. Her work is mostly based on chart patterns than on technical indicators (which she considers too, though of course). The trade planning is good – you get exact information on when to buy or sell to take profit and where to set your stop loss order. We will update this section with more results soon, though if we consider her past performance on Twitter, you can expect advanced trading with nice risk-reward ratios.
Buying and selling this virtual currency markets is risky, so you need signals with a good probability, as the market volatility can become high. As the name implies, you will also get a constant stream of cryptocurrency and Bitcoin news. Please note that Bitmex signals are only an add-on here to the general crypto signals they provide, so you will get a roundup of regular trade recommendations and some for Bitmex on top.
Trusted Signal Provider
Please contact https://t.me/Verifiedcrypto by Telegram to enroll.
Please Note: We would rank VCN much higher, though it is more a general crypto signals channel. This means less quantitiy in Bitmex signals, so please only subscribe if you want both kind of trade setups (general altcoin trades and Bitmex trades)
Free Channel: https://t.me/VerifiedCryptoNews (we didn’t saw a single cross-promotion during our test period)
Results Tracking Channel: https://t.me/VerifiedCryptoResult
More Info: VerifiedCryptoNews.com / VerifiedCryptoTraders.com / VerifiedCryptoChat.com/
How the channel looks inside:
How to use Bitmex Signals
Golden Rules when trading these Signals
This is a small Bitmex Signals 101 on how to not burn your account. Follow this rules to a t and you will have your account very long and prosper. I know, many people just join signal groups and go all in, in full trust, but this is not how to do it, this is the way to burn your account. Traders are never 100% right, 60-70% is great rate and these tested providers have shown this number in consistency for a longer timeframe. But there will be losers – it is normal! Here are the rules for you to print and glue them on your desk.
- Allocate no more than 10% of your total equity for each trade.
- If the entries are even numbers, modify them to odd numbers
- Spread this 10 % for each signal 4% at entry, 3% more above, another 3% even more above for short order, 4% at entry, 3% below and another 3% if the price drops even more for a buy order.
- Take profit on targets, make targets odd numbers if even.
- Take 50% out on TP1 and move the stop-loss to break even. This way you book profits and make the trade risk-free at the same time. Take 10-20% on the targets after TP1 and leave some tiny % on the trade as you never know.
- Never exceed 10x.
- There are no “safe trades”. Treat each trade like that. Safety can only come from how you handle your account by your money management.
How to use leverage on Bitmex
Day Trading cryptocurrencies has its ups and downs. However, the biggest advantage in bear times is leverage trading on Bitmex for your trades, if you know what you are doing. Leverage simply means that you borrow money for investing in something. In case of the cryptocurrency market, these funds are given by the other traders’ funds as Bitmex is a mercantile peer-to-peer exchange with a smart funding feature. If you critically evaluate the working of the Bitcoin trading sector, then the working mechanism is similar to that of the Forex market. For example, when you trade leverage 50:1 in the forex market, then this means that you can trade 50 times more than the original capital. Different cryptocurrency exchanges offer the users the facility to open up leverage positions, Bitmex even offers up to 100x times leverage on Bitcoin trades – our suggestion though is that you never should exceed 10x. However, the leverage ratios that are offered in the digital currency market are quite low for the most other exchanges. The reason is the volatility of the digital currency market and the implemented danger to leverage a trade in high numbers. The leverage in the digital currency world follows one simple rule, “High leverage can yield high returns,” but there is also a possibility that high leverage can yield heavy losses.
Let’s start a small tutorial that shows how you can trade on bitmex with possible leverage.
Understanding the Difference between Margin and Leverage
When you have made up your mind to trade cryptos with leverage, then you need to be familiar with another concept also, and that is margin trading. Margin can simply be termed as a good faith deposit that is required to keep your trade open. The leverage can be termed as a by-product of margin trading, and it helps the trader to control the trade size.
When you wish to indulge in margin trading with cryptocurrencies, then you will have to borrow the money against your existing funds. This means you will trade on margin on Bitmex and you are leveraging your existing funds and increasing your buying/selling power.
With great power, comes great responsibility
Example of a leveraged long trade with Bitmex
If one buys 1 bitcoin with 0.1 BTC by buying a 10x margin position at BitMEX, it must be noted that the rate of dollars used will vary with current market value. This leverage is taken at 10x. Moreover, the price of bitcoin can also be shorted if the contract is sold by any means. Here the constant risk of losing the stake is present. This leverage was initially set at 10x. It can be raised to as high as 100x with Bitcoin, which is never advisable. Evidently, 100x leverage is a blind risk or gambling as some people may call it. But if one plays a successful gamble, it pays blind riches back – but most of the times it leaves rek’t accounts behind. The key to such a mammoth success is how effective the strategy of the businessman or investor is. As far as the jargons are concerned, when carrying out the operation, the available balance and cost are defining factors.
Note: The cost must be lower than the available balance for the uninterrupted and successful execution of the process.
At first, the position of the user is set at a certain quantity. This quantity is in dollars and is variable according to the changing asset. Moreover, the amount of money that is reserved as a risk is less than that. It is an unsaid rule for a smooth operation.
- Cost: There is another term known as a cost that has slightly more than the literal meaning of the word. The value of the BTC determines the cost, and the leverage factor multiplies to that values, e., in this case, it is around 0.10 BTC (leverage is still 10x).
- Order Value: Next thing we encounter is the order value. In this example, the value of the position is set to a specific value. The order value is determined from that. Here too the value is 1 BTC. Its value in dollars is calculated according to the current rate of the dollar in the international market.
Note: It should be remembered that fees are calculated on this value.
- Available Balance: Available balance is also an important term. It is the amount of the equity present in the current time for the trading. As mentioned before, it should be sufficient enough to start off a trade and must be quite greater than the cost as we have defined it previously.
- Liquidation Price: The liquidation price is also calculated during the process. It is an approximate value that is calculated in case of insufficient time, or the business faces insufficient exposure at any time. There is a calculator on the website, you can use upfront to calculate your liquidation price – and you should make use of it.
After defining all the terms, values and margins, we are ready for the execution. The details of all the inputs and corresponding output are now ready to be looked at. An interesting fact is that the profit can exceed 100% or even more but the losses are restricted to 100%, and the efforts are of course made to minimize this percentage as low as possible.
Example of a leveraged short trade with Bitmex
The procedure is the same, but the percentages of the long and short profits and losses differ a great. Like long, the profit can exceed up to 100%, but unlike long, it cannot be termed as unlimited. This is because, in short, profit is limited when the price has fallen to 100%. Now, the price would become negative as it falls any further with the current or increased rate hence limiting the value of the profit. This is one of the many specialties of the BitMEX. The trading contracts are designed in a way to optimize the benefits of the clients to broaden the outreach of this entire program and translating the business strategies into the digital world to provide an easy and timely access across the globe.
Options, Options, Options for leveraged trades on Bitmex
Most of the platforms offer two order types. One is the limit order, and the other one is a market order. This means that you will buy or sell your order at the market or the limit price. With a market order, the order gets executed directly against the order book. With a limit order, it gets triggered once a certain price is reached. You always should add stops to your orders when you go into day trading, chances are high to get your complete funds on this bet liquidated fast, especially with leverage. For this stop orders, it is the same, you can place it as limit order (not advisable, these often don’t get filled in fast moves) or as a market order. This means that your order will only be executed once the specified stop level is reached. In short, the stop level will act as a trigger for your order. If the trigger is not reached, then the order will not be executed.
Bitmex also offers advanced order types. For example, you can set hidden stop loss orders, trailing stop orders, take profit as limit or as a market order. Again, using this options makes sense with the market option, even if you pay more fees for it. Past has shown limit orders often don’t trigger with fast moves, and those happen pretty often.
The Fee Structure for Leverage Trading on Bitmex
To those who are not familiar with the maker/taker fee concept it works like the following:
Maker fees are paid when your order is executed via limit order below or above the current ticker price. Example Bitcoin is at 7,000 USD and you place a sell order at 7,250 USD. You add liquidity by doing so, this is rewarded with lower fees.
Taker fees are paid when you trade the order book with a market order. If you place a market order buy at 7,000 USD it needs a seller that wants to sell his contracts at this price. This removes liquidity from the system as it removes other traders’ offers.
So if you buy with a market order you pay 0.075% fees. If you use a leverage of 10x, it will multiply with it and you pay 0.75% and so on. Always keep the fees in mind!
Free Bitmex Signals on Twitter and Telegram
Furtherly we found a few Twitter accounts that provide also great trading signals for Bitcoin on Twitter. The signals are just a few here and there and you have to follow the Twitter account closely, but it is worth it. On top of that we provide one telegram channel that gives great Bitmex signals for free, though it is just a matter of time, it will cost something.
We hope you enjoyed this overview of Bitmex signal providers and wish you much luck and good results in trading. Please be sure to use a low leverage like 3x max to put an extra layer of safety to your trades. Trading is no fast money-making, it is about a slow and steady increase of your equity. Buying and selling with leverage in the markets can raise your funds – and yes, you can use them than to purchase more altcoins at the current discount prices, but the risks are significantly higher. Always keep that in mind. Stay & trade safely!