How to open contracts on BitMEX

To commence contract trading on BitMEX, creating an account, funding it, and selecting your preferred tradable contract are initial imperative steps.

Nov 16, 2024 at 01:00 pm

How to Open Contracts on BitMEX

Step 1: Create an Account and Deposit Funds

To begin trading on BitMEX, you must first create an account and deposit funds. The process is simple and straightforward:

• Visit the BitMEX website (bitmex.com) and click on the "Register" button.
• Enter your email address, create a password, and agree to the terms of service.
• Verify your email address by clicking on the link sent to your inbox.
• Once your account is verified, you can deposit funds by clicking on the "Deposit" button.
• Select your preferred deposit method (e.g., Bitcoin, Ethereum, Tether) and follow the instructions on the screen.
• Your funds will be deposited into your BitMEX account within a few minutes.

Step 2: Select the Contract You Want to Trade

BitMEX offers a wide variety of contracts, including perpetual futures, futures contracts, and options. To select the contract you want to trade, click on the "Contracts" tab at the top of the screen.

• You will be presented with a list of all available contracts.
• Filter the list by type (e.g., perpetual futures, futures contracts, options) or by underlying asset (e.g., Bitcoin, Ethereum, Ripple).
• Once you have found the contract you want to trade, click on the "Trade" button.

Step 3: Enter Your Order Parameters

Once you have selected the contract you want to trade, you need to enter your order parameters. This includes the type of order (e.g., market order, limit order, stop order), the quantity of contracts you want to trade, and the price at which you want to buy or sell.

• Market Order: A market order is an order to buy or sell at the best available market price.
• Limit Order: A limit order is an order to buy or sell at a specified price or better.
• Stop Order: A stop order is an order to buy or sell when the price reaches a specified level.

Step 4: Submit Your Order

Once you have entered your order parameters, click on the "Buy" or "Sell" button to submit your order. Your order will be placed on the order book and will be filled when the market price reaches your desired price.

Step 5: Monitor Your Order

Once your order has been submitted, you can monitor its status on the "Orders" tab. This tab will show you the current status of your order, including the price at which it was filled and the quantity of contracts that were traded.

Step 6: Close Your Position

When you are ready to close your position, you can do so by submitting a closing order. This order will be for the opposite quantity of contracts that you originally traded. For example, if you opened a long position for 10 contracts, you would need to close your position by selling 10 contracts.

Tips for Opening Contracts on BitMEX:

• Use a limit order to avoid slippage. Slippage is the difference between the price you expect to trade at and the price at which your order is actually filled. By using a limit order, you can specify the exact price at which you want to buy or sell.
• Manage your risk by using stop-loss orders. A stop-loss order is an order to sell your position if the price falls below a specified level. This can help you to protect your profits and limit your losses.
• Be aware of the risks involved in trading on BitMEX. The cryptocurrency market is volatile, and you could lose money if the market moves against you.