BitMEX is a popular bitcoin-based trading platform that offers a wide range of order types for traders to choose from. Understanding BitMEX order types is crucial for traders who want to maximize their profits and minimize their risks. In this article, we will guide you through the different types of orders available on BitMEX, how to use them, and the risks associated with each one.
Trading on BitMEX can be intimidating for new traders, but the platform’s user-friendly interface makes it easy to navigate. We will walk you through the BitMEX trading interface, including how to place orders, manage your positions, and set up leverage and risk management tools. Additionally, we will cover the differences between spot and derivatives trading on BitMEX and how to manage your BitMEX account.
Understanding BitMEX pricing is also important for traders, as the platform uses a unique system that can be confusing at first. We will explain how BitMEX calculates its prices and how to interpret them. Finally, we will discuss jurisdiction and compliance issues related to BitMEX and provide answers to some frequently asked questions.
Key Takeaways
- BitMEX offers a variety of order types, each with its own risks and benefits.
- Traders can use the BitMEX trading interface to manage their positions, set up leverage, and manage risk.
- Understanding BitMEX pricing and compliance issues is essential for successful trading on the platform.
Understanding BitMEX Order Types
BitMEX offers various order types to suit the needs of different traders. Each order type has its own advantages and disadvantages, and traders need to understand them to make informed decisions. In this section, we will discuss the different BitMEX order types and their features.
Market Orders
A market order is the simplest type of order and is executed immediately at the current market price. Traders use this order type when they want to quickly enter or exit a position. However, market orders do not guarantee the price at which the order will be filled, and the execution price may differ from the expected price.
Limit Orders
A limit order is an order to buy or sell at a specified price or better. Traders use this order type when they want to enter or exit a position at a specific price. Limit orders provide more control over the execution price, but they may not be filled if the market does not reach the specified price.
Stop Market
A stop market order is an order to buy or sell at the market price once the price reaches a specified trigger price. Traders use this order type to limit their losses or lock in profits. When the trigger price is reached, the stop market order becomes a market order and is executed at the prevailing market price.
Stop Limit
A stop limit order is similar to a stop market order, but it becomes a limit order instead of a market order when the trigger price is reached. Traders use this order type when they want to limit their losses or lock in profits but also want to control the execution price.
Trailing Stop
A trailing stop order is an order to buy or sell at the market price once the price moves a specified distance from the current market price. Traders use this order type to follow the trend and limit their losses or lock in profits. The trailing distance can be specified as a percentage or a fixed amount.
Options
BitMEX also offers options trading, which allows traders to buy or sell options contracts at a specified price. Options provide traders with the ability to hedge their positions or speculate on the price movements of underlying assets. BitMEX offers both European and American style options, each with its own features and advantages.
| Order Type | Advantages | Disadvantages |
|---|---|---|
| Market Orders | Quick execution | No price control |
| Limit Orders | Price control | May not be filled |
| Stop Market | Limit losses | Execution price not guaranteed |
| Stop Limit | Control execution price | May not be filled |
| Trailing Stop | Follow trend | Execution price not guaranteed |
| Options | Hedging and speculation | Complex pricing and expiration |
Understanding the different BitMEX order types is crucial for successful trading. Traders should choose the order type that best suits their trading strategy and risk tolerance.
Trading on BitMEX
BitMEX offers a variety of order types to help traders execute their strategies in the most efficient way possible. Before trading on BitMEX, it is important to understand the different order types and how to use them. In this section, we will cover how to open, close, and update positions on BitMEX.
Opening Positions
To open a position on BitMEX, a trader can use either a market order or a limit order. A market order is executed immediately at the current market price, while a limit order allows the trader to specify a maximum or minimum price at which they are willing to buy or sell.
When opening a position, a trader can also set a stop loss order to limit potential losses. A stop loss order is an order that is triggered when the price reaches a certain level, and it is used to close out a position at a predetermined loss.
Closing Positions
Closing a position on BitMEX can be done in several ways. A trader can use a market order to close the position immediately at the current market price, or they can use a limit order to specify a price at which they want to close the position.
Another way to close a position is to use a stop order. A stop order is an order that is triggered when the price reaches a certain level, and it is used to close out a position at a predetermined profit.
Updating Positions
Traders can update their positions on BitMEX by placing new orders or modifying existing orders. To modify an existing order, a trader can cancel the order and place a new one with the desired changes.
Traders can also use the BitMEX API to automate their trading strategies and update their positions automatically. The API allows traders to place orders, monitor their positions, and receive real-time market data.
Overall, BitMEX offers a variety of order types and tools to help traders execute their strategies efficiently. By understanding how to open, close, and update positions on BitMEX, traders can take advantage of the platform’s advanced trading features and maximize their profits.
| Order Type | Description |
|---|---|
| Market Order | An order that is executed immediately at the current market price. |
| Limit Order | An order that allows the trader to specify a maximum or minimum price at which they are willing to buy or sell. |
| Stop Loss Order | An order that is triggered when the price reaches a certain level, and it is used to close out a position at a predetermined loss. |
| Stop Order | An order that is triggered when the price reaches a certain level, and it is used to close out a position at a predetermined profit. |
BitMEX Trading Interface
The BitMEX trading interface is designed to provide traders with an easy-to-use platform to execute trades. The interface is user-friendly and intuitive, making it easy for both novice and experienced traders to navigate.
Using the BitMEX Mobile App
For traders who prefer to trade on-the-go, BitMEX offers a mobile app that is available for both iOS and Android devices. The app provides all the features of the desktop version, including the ability to place and manage orders, view charts, and monitor positions.
The mobile app is designed to be fast and responsive, with a streamlined interface that makes it easy to execute trades on the go. Traders can also set up push notifications to receive real-time updates on their trades, positions, and market movements.
Trading with Old Browsers
To ensure the best user experience, BitMEX recommends using the latest version of Firefox or Chrome when accessing the trading interface. This is because older browsers may not support the latest web technologies used by the platform, which can result in slower performance and other issues.
Traders who are using an older browser may experience issues with the platform, such as slow loading times or missing features. To avoid these issues, it is recommended that traders upgrade to the latest version of their preferred browser.
| Browser | Supported Version |
|---|---|
| Firefox | Latest |
| Chrome | Latest |
In summary, the BitMEX trading interface is designed to be user-friendly and intuitive, with features that cater to both novice and experienced traders. The mobile app provides a fast and responsive experience, while traders are advised to use the latest version of Firefox or Chrome for the best experience on the desktop platform.
Leverage and Risk Management
Understanding Leverage
BitMEX allows traders to trade with leverage, which means that they can borrow funds from the exchange to place trades. Leverage amplifies a trader’s potential profits, but it also amplifies their potential losses. Therefore, it is important for traders to understand how leverage works and to use it responsibly.
Leverage is expressed as a ratio, such as 10x or 100x. For example, if a trader has 10x leverage on a $1,000 position, they are effectively trading with $10,000. If the position increases in value by 10%, the trader would make a profit of $1,000, or 100% of their initial investment. However, if the position decreases in value by 10%, the trader would lose $1,000, or 100% of their initial investment.
Traders should carefully consider their risk tolerance and trading strategy when choosing their leverage. Higher leverage can lead to higher profits, but it also increases the risk of liquidation and loss. Traders can use BitMEX’s margin calculator to estimate the liquidation price of their position based on their chosen leverage and position size.
Implementing Controls
To manage the risk of trading with leverage, traders can implement various controls. One common control is a stop loss order, which automatically closes a position if the price reaches a certain level. Traders can set stop loss orders to limit their potential losses in case the market moves against them.
Another control is position size limits, which limit the amount of funds that a trader can risk on a single position. Traders can set their position size based on their risk tolerance and trading strategy to avoid overexposure to any single trade.
BitMEX also offers various order types that can help traders manage their risk, such as limit orders, market orders, and trailing stops. Traders can use these order types to enter and exit positions at specific prices and to automate their trading strategy.
Overall, traders should use leverage and risk management controls responsibly to avoid excessive risk and potential losses. By understanding how leverage works and implementing appropriate controls, traders can trade with confidence and manage their risk effectively.
| Control | Description |
|---|---|
| Stop loss order | Automatically closes a position if the price reaches a certain level |
| Position size limits | Limits the amount of funds that a trader can risk on a single position |
| Limit orders | Allows traders to enter and exit positions at specific prices |
| Market orders | Allows traders to enter and exit positions at the current market price |
| Trailing stops | Automatically adjusts the stop loss order as the price moves in the trader’s favor |
BitMEX Spot and Derivatives Trading
Spot Trading
BitMEX offers spot trading for a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Spot trading refers to the buying and selling of cryptocurrencies at the current market price. Traders can use market orders to execute trades immediately or limit orders to set a maximum or minimum price they are willing to buy or sell at.
BitMEX’s spot exchange also offers crypto-to-crypto trades, allowing traders to exchange one cryptocurrency for another. This can be useful for diversifying a portfolio or taking advantage of price fluctuations between different cryptocurrencies.
Derivatives Trading
In addition to spot trading, BitMEX also offers derivatives trading for cryptocurrencies. Derivatives are financial contracts that derive their value from an underlying asset, in this case, cryptocurrencies.
BitMEX’s derivatives trading includes perpetual contracts, futures contracts, and options contracts. Perpetual contracts are similar to traditional futures contracts but do not have an expiration date. Futures contracts allow traders to buy or sell an asset at a predetermined price and date in the future. Options contracts give traders the right, but not the obligation, to buy or sell an asset at a predetermined price and date in the future.
Derivatives trading on BitMEX allows traders to take advantage of leverage, which means they can trade with more funds than they actually have. However, this also means that losses can be magnified, so it is important for traders to understand the risks involved.
BitMEX Derivatives Trading Comparison Table
| Contract Type | Leverage | Settlement | Funding | Expiration |
|---|---|---|---|---|
| Perpetual | Up to 100x | Every 8 hours | -/+ 0.05% | None |
| Futures | Up to 100x | At expiration | -/+ 0.03% | Set expiration date |
| Options | Up to 100x | At expiration | -/+ 0.03% | Set expiration date |
Overall, BitMEX’s spot and derivatives trading platforms offer a range of options for traders to buy, sell, and trade cryptocurrencies. Whether a trader is looking for immediate execution with spot trading or the ability to use leverage with derivatives trading, BitMEX has options available.
Managing Your BitMEX Account
Managing your BitMEX account is an essential part of trading on the platform. In this section, we will discuss the key aspects of managing your BitMEX account, including deposits and withdrawals and false representations.
Deposits and Withdrawals
Depositing and withdrawing funds on BitMEX is a straightforward process. To deposit funds, users need to navigate to the “Account” tab on the top-right corner of the screen and select “Deposit.” Users can deposit Bitcoin (BTC) and other cryptocurrencies supported by BitMEX. Once the deposit is confirmed on the blockchain, the funds will be credited to the user’s account.
To withdraw funds, users need to navigate to the “Account” tab and select “Withdraw.” Users can withdraw Bitcoin and other cryptocurrencies supported by BitMEX. Withdrawals are processed once a day, and the deadline for submitting a withdrawal request is 13:00 UTC. BitMEX charges a fee for withdrawals, which varies depending on the cryptocurrency.
False Representations
BitMEX takes false representations seriously and has a zero-tolerance policy towards any form of market manipulation. False representations include any activity that seeks to manipulate the market or deceive other traders. BitMEX has a team of experts that monitor the platform for any suspicious activity and investigate any reports of false representations.
BitMEX has also implemented various measures to prevent false representations, including the use of anti-manipulation tools and surveillance systems. BitMEX also has a robust system for reporting false representations, and users are encouraged to report any suspicious activity.
In conclusion, managing your BitMEX account is a crucial part of trading on the platform. Depositing and withdrawing funds is a straightforward process, and BitMEX takes false representations seriously and has implemented various measures to prevent it.
Understanding BitMEX Pricing
BitMEX offers a range of order types to suit different trading strategies. Understanding BitMEX pricing is crucial for traders who want to make informed decisions about their trades. This section will help you understand how BitMEX pricing works.
Price Movement
Price movement is a critical factor in BitMEX pricing. The price of a contract is determined by the market demand and supply. BitMEX uses a fair price marking system to ensure that the price of a contract reflects the underlying market price. This means that the price of a contract is always close to the market price.
BitMEX uses a unique system called the BitMEX Index to calculate the fair price of a contract. The BitMEX Index is a composite price of several exchanges, including Bitstamp, Coinbase Pro, and Kraken. This system ensures that the price of a contract is not manipulated by a single exchange.
High and Low Prices
BitMEX offers contracts with different high and low prices. The high and low prices of a contract are determined by the leverage used. The higher the leverage, the higher the high price, and the lower the low price. The low price is the price at which a trader’s position will be liquidated if the price falls below that level.
BitMEX offers up to 100x leverage on some contracts. This means that a trader can open a position that is 100 times larger than their account balance. However, high leverage also comes with high risk. Traders should always use appropriate risk management strategies when trading with high leverage.
| Entity | Description |
|---|---|
| Price | The price of a contract is determined by market demand and supply |
| Price Movement | BitMEX uses the BitMEX Index to calculate the fair price of a contract |
| High and Low Prices | The high and low prices of a contract are determined by the leverage used |
- BitMEX uses a fair price marking system to ensure that the price of a contract reflects the underlying market price.
- The BitMEX Index is a composite price of several exchanges, including Bitstamp, Coinbase Pro, and Kraken.
- BitMEX offers contracts with different high and low prices, determined by the leverage used.
- Traders should always use appropriate risk management strategies when trading with high leverage.
Understanding BitMEX pricing is critical for traders who want to make informed decisions about their trades. By understanding price movement and high and low prices, traders can make better decisions about their trades.
Jurisdiction and Compliance
BitMEX is a cryptocurrency derivatives exchange that operates globally and is committed to complying with regulatory requirements in all jurisdictions where it operates. To ensure that it meets its regulatory obligations, BitMEX has implemented a comprehensive compliance program that includes Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Restricted Jurisdictions
BitMEX is not available to residents of certain countries, including the United States, Quebec (Canada), Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, and Sudan. BitMEX also may restrict access to its platform from other countries or jurisdictions from time to time, depending on regulatory requirements.
Citizenship and Residence Requirements
BitMEX requires all users to provide proof of identity and residency as part of its KYC and AML procedures. Users must be at least 18 years old to use the platform, and they must not be citizens or residents of any restricted jurisdictions. Users must also not be on any sanctions lists or subject to any other legal restrictions that would prevent them from using the platform.
BitMEX may also require additional information from users, depending on their citizenship or residency. For example, users who are citizens or residents of the European Union may need to provide additional information to comply with the General Data Protection Regulation (GDPR).
BitMEX’s compliance program is designed to ensure that the platform operates in accordance with applicable laws and regulations in all jurisdictions where it operates. BitMEX is committed to working with regulators and law enforcement agencies to prevent money laundering, terrorist financing, and other illegal activities.
Overall, BitMEX takes compliance and regulatory requirements seriously and is committed to providing a safe and secure platform for its users.
| Restricted Jurisdictions |
|---|
| United States |
| Quebec (Canada) |
| Cuba |
| Crimea |
| Sevastopol |
| Iran |
| Syria |
| North Korea |
| Sudan |
API and Technical Details
ClOrdLinkID
ClOrdLinkID is a unique identifier for a group of orders that are intended to be executed together as a unit. This field is optional and is used to link orders together. When an order is linked to another order, the ClOrdLinkID is set to the same value for both orders.
Symbol
Symbol is a required field that specifies the instrument to trade. This field is case sensitive and should match the symbol exactly as it appears in the trading system. The symbol must be a string.
SimpleOrderQty
SimpleOrderQty is a required field that specifies the order quantity in units of the instrument being traded. This field is used for simple order types such as limit and market orders. The order quantity must be a positive integer.
OrderQty
OrderQty is a required field that specifies the order quantity in units of the instrument being traded. This field is used for more complex order types such as stop and limit orders. The order quantity must be a positive integer.
DisplayQty
DisplayQty is an optional field that specifies the quantity to display in the order book. This field is used for iceberg orders. The display quantity must be less than or equal to the order quantity.
StopPx
StopPx is a required field that specifies the stop price for stop orders. This field is used to trigger a market order when the stop price is reached. The stop price must be a positive decimal number.
PegOffsetValue
PegOffsetValue is an optional field that specifies the offset from the market price for pegged orders. This field is used to set the price of the order relative to the market price. The peg offset value must be a decimal number.
PegPriceType
PegPriceType is an optional field that specifies the type of pegged order. This field is used to set the price of the order relative to the market price. The peg price type must be one of the following: LastPeg, MidPricePeg, MarketPeg, PrimaryPeg, or TrailingStopPeg.
ExecInst
ExecInst is an optional field that specifies the execution instructions for the order. This field is used to specify how the order should be executed. The execution instructions must be one of the following: ParticipateDoNotInitiate, AllOrNone, MarkPrice, IndexPrice, LastPrice, or Close.
ContingencyType
ContingencyType is an optional field that specifies the type of contingency order. This field is used to specify the conditions under which the order should be executed. The contingency type must be one of the following: OneCancelsTheOther, OneTriggersTheOther, or OneUpdatesTheOtherAbsolute.
Triggered
Triggered is an optional field that specifies whether the order has been triggered. This field is used to indicate whether the order has been triggered by a stop or limit price. The triggered field must be a boolean value.
In conclusion, understanding the technical details of the BitMEX API is crucial for successful trading. By understanding the various fields and their uses, traders can create more complex and advanced orders, leading to better trading outcomes.
Frequently Asked Questions
What are the different types of BitMEX contracts available?
BitMEX offers several different types of contracts, including perpetual contracts, traditional futures contracts, and UPs and DOWNs contracts. Perpetual contracts are designed to mimic a traditional futures contract, but with no expiration date. Traditional futures contracts have a set expiration date and require settlement upon expiration. UPs and DOWNs contracts are binary options contracts that pay out a fixed amount if a certain condition is met.
What is the difference between futures and perpetual contracts on BitMEX?
Futures contracts have a set expiration date, while perpetual contracts do not. Perpetual contracts are designed to mimic a traditional futures contract, but with no expiration date. Because of this, perpetual contracts are often used for longer-term trading strategies, while futures contracts are used for shorter-term trading.
How do I use BitMEX’s advanced order types?
BitMEX offers several advanced order types, including stop orders, limit orders, and market orders. Stop orders allow traders to set a trigger price at which a trade will be executed. Limit orders allow traders to set a maximum or minimum price at which they are willing to buy or sell. Market orders are executed immediately at the current market price.
What is the minimum order size on BitMEX?
The minimum order size for most contracts on BitMEX is 1 contract. However, some contracts may have a higher minimum order size.
Can US citizens trade on BitMEX?
No, US citizens are not allowed to trade on BitMEX due to regulatory restrictions.
How do I calculate my profit and loss on BitMEX?
To calculate profit and loss on BitMEX, traders can use the PNL calculator provided on the BitMEX website. The calculator takes into account factors such as entry price, exit price, and leverage used.