Bitmex is a cryptocurrency exchange founded in 2014. It is a P2P trading platform where users enter into leveraged contracts for profit. It doesn't accept fiat currencies as all trades are performed with Bitcoin. Asides contracts, Bitmex offers Margin Trading for users. This review contains the information needed to engage in margin trading.
About Bitmex Margin Trading
Margin Trading in cryptocurrency is a method of trading crypto assets with funds from a third party. In this case, the funds can be from other traders or the exchange. Although margin trading increases the possibility of accelerated profit, it has enormous risk attached to it should the trade turn to a loss.
Margin trading on Bitmex requires expertise. Therefore, it is essential that before you engage in margin trades, ensure you have implemented right trading strategies and risk management. In cases where a trader's position is liquidated in the market, Bitmex employs Auto Deleveraging to reduce leveraged positions. Presently, Bitmex offers margin trading for eight cryptocurrencies namely Bitcoin (up to 100x), Ethereum (up to 50x), Litecoin (up to 33.33x) while Cardano, Bitcoin Cash, EOS, Tron, and Ripple has up to 20x leverage.
Users can set a leveraged position for all products on the exchange except UP & DOWN contracts. However, the leverage level also depends on the type of product. Bitmex offers up to 100x leverage for traders on its Perpetual BTC/USD contract. It means that if a trader has about $2,000, he/she can margin trade with $200,000.
The initial margin and maintenance margin determines the leverage level a trader can enjoy. Initial margin is the minimum amount of Bitcoin required to be able to open a margin position. The minimum number of Bitcoin needed to keep a position open is the maintenance margin.
Bitmex is not available for US citizens due to the country increased demand for regulation. It also doesn't require KYC procedures to allow users partake in trades.
Summary
Bitmex is one of the world's most popular cryptocurrency exchanges. Launched in 2014, it offers margin trading with a leverage of up to 100x. It charges low fees on every contract. Unlike most exchanges, it doesn't require users to go through any KYC program to begin trading. For any experienced trader with sound risk management discipline who seeks to increase profits, Bitmex is an excellent platform to start.
- Leverage: Bitmex offers up to 100x leverage for its traders. With the initial and maintenance margin requirements met, you can increase your winning potentials. Bitcoin contracts offer up to 100x leverage while Ethereum offers up to 50x, etc.
- Multicurrency Support: Users can trade on eight different cryptocurrency markets, i.e., ETH, EOS, BCH, BTC, XRP, ADA, LTC, and TRX.
- Low Fees: Bitmex charges low fees on all its contracts. For instance, it's maker fees is -0.025% or -0.05% and 0.075% or 0.25% as taker fees depending on the product. Futures contract settlement fee is pegged at 0.05%.
- No KYC program: Bitmex allows its traders to engage in trading activities on the exchange without any need for identity verification. To uphold its cause against regulation, it banned US citizens from trading on its site.
- No Fiat Payment: Users cannot deposit or withdraw funds from the exchange in fiat currencies. All deposits are made in Bitcoin.
- US Ban: Due to failure to meet local regulation laws in the U.S.A., Bitmex banned US traders from operating on its site. Although the U.S.A. is a huge market, this ban would affect Bitmex mainstream adoption.
- Sometimes, due to the high number of trade, the exchange malfunctions.
