BitMEX contract beginner tutorial

To trade futures and perpetual contracts on crypto assets like Bitcoin, create an account, fund it, place orders, track their status, and close them securely on the leading exchange BitMEX.

Nov 14, 2024 at 08:13 pm

BitMEX Contract Beginner Tutorial

Introduction

BitMEX is a leading cryptocurrency derivatives exchange that allows users to trade futures and perpetual contracts on a variety of crypto assets, including Bitcoin, Ethereum, and Litecoin. Futures contracts are agreements to buy or sell an asset at a set price on a future date, while perpetual contracts are similar to futures contracts but do not have an expiration date.

This tutorial will provide a step-by-step guide for beginners on how to use BitMEX to trade contracts. We will cover topics such as creating an account, funding your account, and placing an order.

Step 1: Creating an Account

1. Visit the BitMEX website (https://www.bitmex.com/) and click on the "Sign Up" button.
2. Enter your email address and create a password.
3. Select a username and enter your personal information.
4. Agree to the Terms of Service and Privacy Policy.
5. Click on the "Create Account" button.

Step 2: Funding Your Account

1. After creating an account, you need to fund it with cryptocurrency.
2. Log in to your BitMEX account and click on the "Deposit" button.
3. Select the cryptocurrency you want to deposit and generate a deposit address.
4. Send the cryptocurrency from your wallet to the deposit address.

Step 3: Placing an Order

1. Once your account is funded, you can start placing orders.
2. Click on the "Trade" tab and select the contract you want to trade.
3. Enter the order type, quantity, and price.
4. Click on the "Buy" or "Sell" button to place the order.

Step 4: Monitoring Your Orders

1. Once you have placed an order, you can monitor it on the "My Orders" tab.
2. This tab will show you the status of your orders, including the filled quantity, remaining quantity, and current price.

Step 5: Closing Your Orders

1. To close an order, you can either click on the "Close Order" button or place an opposite order.
2. For example, if you have a long position, you can close it by placing a short position of the same size.

Advanced Concepts

Once you have mastered the basics of using BitMEX, you can start exploring more advanced concepts such as:

• Leverage: Leverage allows you to trade with more capital than you have available.
• Margin: Margin is the amount of capital that you need to maintain in your account in order to use leverage.
• Liquidation: Liquidation occurs when your margin falls below the required level.

Conclusion

This tutorial has provided a comprehensive overview of how to use BitMEX to trade contracts. While there is a learning curve involved, it is possible for beginners to get started with BitMEX and start trading profitably.