Intro to Margin Trading – Bitfinex Help Center

Everything Related To XBT, XBT Futures/BTC Futures, and leveraged crypto trading

XBT, XBTBTC futures trading central, leveraged trading galore. What is XBT anyway, news on XBT, reviews of XBT,Crypto, Bitcoin, Future exchanges, how to properly manageleveraged BTC Leveraged XBT futures trading & margin, best XBT trading platforms, reviews on top btc bitcoin xbt future affiliate programs, data on xbt volume, open interest, liquidations, xbtusd eth conversions! Guides to crypto future trading fee's , & trading on bitmex, primexbt, deribit, bybit, binance futures, & cme futures.
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Complicated Bitcoin Tax Scenarios & How To Fix Them! (BitMex margin trading, mining write-offs, Bitcoin forks, Arbitrage bot traders, Bitcoin IRAs, and more!)

Complicated Bitcoin Tax Scenarios & How To Fix Them! (BitMex margin trading, mining write-offs, Bitcoin forks, Arbitrage bot traders, Bitcoin IRAs, and more!) submitted by stellarowl12 to Bitcoin [link] [comments]

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial submitted by MaxGreenerz to eos [link] [comments]

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial submitted by MaxGreenerz to CryptoMarkets [link] [comments]

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial submitted by MaxGreenerz to EosTrader [link] [comments]

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial

Bitmex Tutorial - How To Trade Leverage On Bitmex - Bitmex Margin Trading & Stop Lose Tutorial submitted by MaxGreenerz to CryptoCurrencyTrading [link] [comments]

BitMEX Margin Trading – How to trade video tutorial

BitMEX Margin Trading – How to trade video tutorial submitted by DisObeyTheGravity to CryptoCurrency [link] [comments]

How to earn Bitcoin on Bitmex - Margin Trading Tutorial

How to earn Bitcoin on Bitmex - Margin Trading Tutorial submitted by HodlersCapital to Bitcoincash [link] [comments]

Beginners Guide on How to Margin Trade BTC & Altcoins Derivatives & Futures Contracts, Full BitMEX Tutorial

https://medium.com/@welshmentradebeginners-guide-on-how-to-margin-trade-btc-altcoins-derivatives-futures-contracts-full-bitmex-58ce17befa17
submitted by welshmentrader to BitMEX [link] [comments]

Which Crypto Platforms Do Traders Trust the Most?

Which Crypto Platforms Do Traders Trust the Most?

https://preview.redd.it/1i87hxupt4g51.png?width=1070&format=png&auto=webp&s=e2c738efddcc055e715fa74a16b9e25db3fbe9d3
Trust is one commodity in the cryptocurrency market that is more valuable for trading platforms than anything else, being that the crypto industry is renowned for the number of platforms that are either maliciously or negligently harmful to their clientele.
It also takes a significant amount of effort and consistency in order for a platform to be able to build up trust within the community, and this also adds to the importance for any cryptocurrency trading platform to be able to build rapport with users and a reputation for professionalism.
We’re breaking down a short list of the crypto trading platforms which investors and traders trust the most in 2020, and exactly how these platforms have built the reputations that they had today.
Trust in the Crypto Space is Hard to Earn, Can be Lost in a Day

https://preview.redd.it/j0islgiwt4g51.jpg?width=1280&format=pjpg&auto=webp&s=756a938697cbd77ff0812ccea373f85d43a7d8c0
One of the most important lessons for any cryptocurrency trading platform is to learn from the mistakes of others instead of experience, and that trust with cryptocurrency traders is hard to earn and very easy to lose.
One of the best examples of a trading platform falling from grace in a spectacular fashion is the implosion of crypto margin trading platform, Bitmex, in 2019 and 2020, where a stream of scandals relating to the integrity of the platform has seen a huge downturn in trade volumes and revenue at the platform.
The downfall of Bitmex acts as a warning to any cryptocurrency trading platform that decides to take their users and the cryptocurrency community as a whole for granted and to think that it won’t have an impact on the bottom line.
What are the Important Considerations?
Security is one of the most important considerations for traders when selecting platforms to use and remain with long-term, being that so many platforms have lost their users’ funds or have implemented low-quality security measures.
As well as this, the integrity of the platform is another major factor in the perception of the cryptocurrency community as to the quality of a given exchange or brokerage, being that many trading platforms have implemented questionable methods of operating.
Another major concern for crypto traders is the communication channels that they have available with a trading platform, and the quality of the customer service that is available at the platform, with the most respected trading platforms also having the best customer service.
Which Crypto Platforms Do Traders Trust the Most?
  • PrimeXBT

https://preview.redd.it/vfjuha5yt4g51.png?width=1000&format=png&auto=webp&s=a3dea709496f8d854bf7be577309fb87f443d995
Although PrimeXBT has only been in the cryptocurrency market for the past 3 years, in that time it has rapidly built a reputation for being a respected and trusted place to trade cryptocurrencies and a wide range of traditional assets.
Because of the robust security measures implemented throughout the site, it has never been hacked or beached, and this has been a fundamental reason for PrimeXBT building the reputation that it has.
As well as this, PrimeXBT was voted as having the best customer service of the top 5 cryptocurrency margin trading platforms on the market, and being the only platform to score high points in all categories in the study.
PrimeXBT also provides regular daily or weekly updates about new features and tools that are being built into the platform, and has a variety of different communication channels available for traders and investors to reach out and get in touch.
  • Coinbase

https://preview.redd.it/cwxjjbizt4g51.png?width=1000&format=png&auto=webp&s=b4d370d3ea5508bfe7448b0b6c96e2ddd393388b
Coinbase is a cryptocurrency trading platform that has been an integral part of the industry for many years, and has been a market leader for much of the time.
Coinbase implements professional-grade security measures throughout the platform, and also is known for having good trading systems and features available.
The only area where Coinbase has received some flak has been in the significantly higher fees the platform charges compared to other trading platforms, and this has brought a bad taste with some traders, however as a whole Coinbase has solidified its reputation over the past years.
In Summary: Which Crypto Platforms Do Traders Trust the Most?
There are a number of key factors that determine the trust that traders and investors have for any given trading platform, with all of these being important, and trading platforms that appropriately focus on them being the ones that have the best reputations in the industry.
Things like the security and safety of a platform, the communication between the platform and the community, and the integrity of the platform and its track record over any significant period of time, will contribute to the platform's reputation in the eyes of crypto traders.
To find out more about PrimeXBT and Coinbase, two of the most well-respected platforms in the cryptocurrency market, check out PrimeXBT’s security features and Coinbase.
submitted by benebit to CryptocurrencyICO [link] [comments]

MCS | 100% Profitable Bitcoin Trading Method

MCS | 100% Profitable Bitcoin Trading Method
\This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.*

https://preview.redd.it/bbpp5xnhqph51.png?width=1024&format=png&auto=webp&s=a20d1f5bafd59fa278e1ed677a510f505efd77df
#Be_a_Trader!
Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.

Cryptocurrency traders are realizing valuable profits through intense trading in their own way. The strategy I am going to share with you is not complicated and may not be the best strategy, but it is a way to trade Bitcoin that is 100% profitable.

🎯 What are Funding Fees?


https://preview.redd.it/4u0f9vniqph51.png?width=1302&format=png&auto=webp&s=a6d77da5f4930a7699b730d57096a7248dd2a907
If you want to trade in bitcoin with 100% profitability, you must first understand the concept of funding fees of perpetual contracts. Due to the nature of Bitcoin perpetual contracts, as it it is a futures product with no expiration date, the gap between the spot price and contract price is closely maintained through funding fees. In simple terms, the funding fee is paid or received once every 8 hours each day to prevent the price of the MCS BTC/USDT perpetual contracts from diverging excessively from the spot price by that can occur due to higher demands in shorts or longs.
For more details regarding funding fees, please find the helpful links below.
Funding Overview : https://help.mycoinstory.com/hc/en-us/articles/360041059811-Funding-Overview

🎯 Bitcoin Trading Strategy with 100% Profitability


https://preview.redd.it/k2g3j0ajqph51.png?width=1300&format=png&auto=webp&s=f51122288180606dd46c3a4b0cfc7af2ebd844d0
Once MCS traders have a complete understanding of funding fees, you can start trading Bitcoin with 100% profit. This trading strategy is called the 1x Short Strategy. Due to the nature of the Bitcoin perpetual contract inverse product, if I take a 1x short position, my bitcoin quantity will vary depending on the bitcoin price, but strangely my assets will remain constant. In this situation, if you receive funding fees, you will continue to accumulate huge interest.
If you are new to the 1x short strategy, you may have not resonated with the details above. I will now explain the details one by one below.

👉 How Can My Assets Be The Same When The Bitcoin Quantity Fluctuates?


https://preview.redd.it/svtr2hwjqph51.png?width=1386&format=png&auto=webp&s=3a252e579956ea055ee3d97e270191b0edb20526
The above chart is a shows the BTC profit and loss when entering the 1x short position with 1 BTC at 10,000 dollars (blue line) and holding 1 BTC as it is (red line). When 1 BTC is held as it is, the amount of BTC does not change depending on the price change. However, if I took a 1x short position with 1 BTC for 10,000 dollars, my BTC profit or loss will fluctuate as shown in the in the blue line according to the change in BTC price. You don't have to worry too much if a 1x short position generates BTC profit or loss. Let's look at the chart below.

https://preview.redd.it/3vclmzhkqph51.png?width=1388&format=png&auto=webp&s=9a45d517a0264e8d215d94e4ca95877e8514630a
In the chart above, the blue line is a position of 1x short with 1 BTC at 10,000 dollars, and the red line is just holding 1 BTC. In this chart, you can see how the value of the asset changes according to the price change. In a glance, you can see that the value of 1 BTC changes according to the price changes. Surprisingly, the blue 1x short position line stays stable in value.
I believe that the more experienced MCS traders realized why the value of the 1x short remained constant. However if you encountered this for the first time, it may be a little difficult to understand. For everyone who did not completely understand, I will explain the 1x short strategy with an example.
💡 Example:
Suppose Hedgehog has 1 BTC in his MCS account and the current BTC price is $10,000. Hedgehog entered 10,000 short contracts with 1x leverage at $10,000 using 1 BTC as margin. Then this can be organized as follows.
Hedgehog's Original Capital = 1BTC Hedgehog's Original Fiat Capital = $10,000
Over time, the price of Bitcoin has reached $15,000. Many traders believe that for a short position, if the price increases, there will be a loss. However there is an exception for 1x short positions. Hedgehog's BTC quantity and asset value can be summarized as follows.
Short Position PNL Equation = (1/Average Closing Price - 1/Average Entry Price) * Quantity
As time has passed, the Bitcoin price is assumed to be $15,000, so the average end price = $15,000
Since Hedgehog entered 10,000 short contracts at $10,000 with 1x leverage, average entry price = $10,000, contract quantity = 10,000 contracts
If substituted, (1/15000 - 1/10000) * 10000 = -0.33333333BTC Hedgehog's loss in BTC is -0.33333333 BTC.
Hedgehog's current BTC Holdings = 1BTC - 0.33333333BTC = 0.66666667BTC
Hedgehog's Asset Value = 0.66666667BTC * $15,000 = $10,000.00005
Wait What‼️ Although the amount of BTC decreased, the price of bitcoin increased by the amount of lost BTC, and the asset value of Hedgehog remained the same.‼️
It is the same in the scenario when the bitcoin price falls. In the case of a 1x short position, if the bitcoin price falls, the amount of BTC increases accordingly, but the bitcoin price decreases, so the asset value of Hedgehog remains at about $10,000. Do you now understand how the 1x short strategy freezes the asset value?
Let's move onto the 2nd question.

👉 But Receiving Funding Fees For Short Position Isn't Guaranteed

If you have clearly established the concept of Funding Fee, you may think "Funding isn't always paid by longs". Funding fees are in some cases paid by longs and some cases paid by shorts. However, if you look at the major cryptocurrency derivatives exchanges Bitmex, Bybit, and MCS, if 90 funding fees are settled per month, more than 95% of them are statistically paid by long positions.

https://preview.redd.it/1x4ruzfmqph51.png?width=1063&format=png&auto=webp&s=941a7baa05ba76883315210276d94d42498f66bc

https://preview.redd.it/huecvdsnqph51.png?width=1066&format=png&auto=webp&s=a1c376f071f5a47c010164c0309a962a474b38ce
If you look at the two tables above, it shows the funding settlement history of BTC/USDT Perpetual Contracts on MCS. Since the first launch of MCS on June 15, the funding fee has been settled about 171 times. If you don't believe my words, you can check the MCS funding details directly through the link below.
MCS Funding Details : https://mycoinstory.com/contract/funding-history

https://preview.redd.it/ruzfyjioqph51.png?width=2324&format=png&auto=webp&s=97a3e5d9c87ce79f75411c9ee7c1178e379ae7da
Some of the world's major banks already have zero interest rates, and many are heading towards zero interest. The Korean bank installments are also 3-4% per year at best, and if you do not pay installments for a long time, you will also have to pay taxes. So I started to take a 1x short installment at MCS. In addition, since the interest on the funding fee comes in every 8 hours, real-time compounding is also possible.

https://preview.redd.it/i6oir60pqph51.png?width=2070&format=png&auto=webp&s=165e22eb6fbaeb6eb71dd2f8f5a3b19a0098750d
In particular, if you look at the funding history on July 28th, you have received an interest of 0.22% in one day. To expand the timeframe, that would be 6.6% of interest for the entire month and 79.2% per year!!! 79.2% INTEREST!! Moreover, if you keep increasing your 1x short position with real-time compounding, this is a risk-free, unconditional way to trade Bitcoin.
Try risk-free trading after familiarizing yourself with the 1x short strategy.

I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post.
\For convenience purposes, trading fees and withdrawal fees are not included in the example of 1x short strategy in this article. The captured image of is an account Hedgehog actually holds with the 1x short savings.*

🔸 MCS Official Website : https://mycoinstory.com
🔸 MCS Telegram : https://t.me/mycoinstory_en

Traders ALWAYS come first on MCS.
Thank you.

MCS Official Twitter (EN): https://twitter.com/mycoinstory_mcs
MCS Official Facebook: https://www.facebook.com/MyCoinStory.official
submitted by MyCoinStory to MyCoinStory [link] [comments]

MCS | What is Leverage in Bitcoin Margin Trading?

MCS | What is Leverage in Bitcoin Margin Trading?
*This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.
https://preview.redd.it/kv2do3np35g51.png?width=1024&format=png&auto=webp&s=21dfd743ae990fa905d2c8224f8bc75dccd7f8c6
#Be_a_Trader!
Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.

If you are a bitcoin trader, you have probably heard of bitcoin leverage trading at least once. I think leverage is a very important function in bitcoin margin trading, along with short selling. What does leverage mean here?

https://preview.redd.it/mwbnwlsq35g51.png?width=1300&format=png&auto=webp&s=ce131d20e644c1f1e99237100d2aa5a67351fc2d

The Definition of Leverage

Leverage comes from leveraging, and we all know what a lever does unless you fell asleep in middle school. The lever principle consists of force, the perpendicular distance from the pivot, moment, and more... Actually, I forgot all about the concept of the lever principle. ;)
A simple explanation of the lever principle is the force multiplication using a small force to lift large objects. Scissors and bottle openers that we often use in everyday life are all using the principle of the lever. The leverage in Bitcoin margin trading can also be understood as a function that gives the effect of a large investment with a small investment.
Leverage is also commonly used in real estate transactions. When one's capital is $1 million and wants to purchase a $2 million building, borrowing $1 million from a bank or other financial institution and purchasing the building is also included in the concept of leverage. By applying this concept directly into the leverage on bitcoin margin trading, which will be explained below, one can purchase a $2 million building with a capital of $1 million, doubling the leverage.
The maximum leverage available for each cryptocurrency derivatives exchange varies slightly. You can use up to 100x leverage on the MCS Bitcoin derivatives exchange. This means that I can trade using up to 100x leverage, which means I can invest up to 100x of my capital.
When making a general Bitcoin transaction, if my capital is $500, the maximum number of Bitcoins that I can be purchased is only $500 worth of Bitcoins. However, on the MCS Bitcoin derivatives exchange, if my capital is $500 and uses 100 times leverage, I can trade with $50K worth of Bitcoins.

https://preview.redd.it/urieqmpr35g51.png?width=1300&format=png&auto=webp&s=a705d09d1930fc2387254c7fa400ea8521218372
The profit and loss rate when trading with and without leverage is the difference between heaven and earth. Assuming that the Bitcoin price has doubled after purchasing, if you invested $500 without using leverage, you will make a profit of $500 and your last asset balance will be $1K. On the other hand, if you used 100 times the leverage and invested $500, the actual transaction will be $50K worth of Bitcoin, so your profit will be $50K, and my final asset will be $50.5K. As you may have noticed, you can earn as much profit as the leverage used. Thus, although my capital may be limited, by using leverage on the MCS Bitcoin derivatives exchange, I can realize an unbelievable return on my capital.

https://preview.redd.it/lcu3nffs35g51.png?width=1300&format=png&auto=webp&s=7b671baceea2a26d92259c563c4080c64f1ea98d
Since I am telling you about leverage, I would like to introduce to the MCS traders who actually realized financial freedom through Bitcoin margin trading at the end of 2017. BJ Wedorm, a legend amongst Korean margin traders, started investing in Bitcoin with $4K and "retired" after a year of trading with a fortune of $10 billion. He who was born in 1996-1997 traded on BitMEX using leverage to triumph the financial freedom we all dream of.

https://preview.redd.it/a977kbft35g51.png?width=1300&format=png&auto=webp&s=1ec504f27487b192160dbc3e96da74efca4999c7
💡 "Poverty has many roots, but the tap root is ignorance." - Lyndon B. Johnson
In Bitcoin margin trading, leverage is a means of trading large investment funds with small capital. Leverage trading is a typical high-risk high-return, a double-edged sword that can be beneficial or harmed to you depending on how you use it. I wish all MCS traders to realize financial freedom by wisely using this leverage, a key element of Bitcoin margin trading, along with short selling.

I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post.
\Trading with leverage is clearly a way to earn a large return; however, it is highly risky. Before trading with leverage, I strongly recommend that you fully understand the advantages and disadvantages of leveraged trading.*

🔸 MCS Official Website : https://mycoinstory.com
🔸 MCS Telegram : https://t.me/mycoinstory_en

Traders ALWAYS come first on MCS.
Thank you.

MCS Official Twitter (EN): https://twitter.com/mycoinstory_mcs
MCS Official Facebook: https://www.facebook.com/MyCoinStory.official
submitted by MyCoinStory to MyCoinStory [link] [comments]

Bitmex

BitMEX is a P2P crypto-products trading platform. BitMEX and the mobile apps issued under BMEX are wholly owned and operated by HDR Global Trading Limited, a Republic of Seychelles incorporated entity or its relevant authorised affiliates. Cryptocurrency charts by TradingView. Bitmex Register Buy and Sell Bitcoin ( BTC ) Bitmex There are many platforms for trading bitcoin and other crypto currencies, but if you want to make complex transactions...
2- BitMEX has remained a dominant force in the futures market for several years. But, regional investments allow Bitmex international and 100x Group to diversify its business further. Bitmex. Warnings Published: 03/03/2020 Last updated: 05/03/2020. We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.
3.- What is Bitmex international is a cryptocurrency exchange that was launched in 2014 and it offers different financial products. Among these products we find cryptocurrency margin trading for Bitcoin, Ethereum and Litecoin up to 100x in the case of Bitcoin.
submitted by elitseo to u/elitseo [link] [comments]

Maker Fee Vs Taker Fee for trader looking for scalping

As an exchange Bitmex is quite lucrative as it offers a fee credit for maker trades, which is not very common. If you are a maker while buying and selling at the same price, you already gain a minimum of 0.05% for XBT and 0.01 for ALT coins.

However in a trending market, the contracts cannot be bought as your maker order bids may never get filled. So sometimes, you have to go for taker trades, especially when market is going against your favorable direction and you have a stop-loss or need to market stop. This also applies to take profit cases where market is retracing from your profitable position.

This brings us to the question what should be reasonable break-even price (or a %) which you are willing to pay, considering that you have placed your bid but know that waiting further may deteriorate your position further.
At max leverage (100x) fox XBT perpetual , this is 0.0250% + 0.0750% = 0.1% ==> 0.1% x100 = 10% of current price
At max leverage (50x) for ETH quarterly, this is 0.05% + 0.250% = 0.3% x 50 = 15% of current price
At max leverage(20x) for XRP quarterly contract, this is 0.05% + 0.250% = 0.3% X 20 = 6% of current price

Obviously these cases are extreme and any leverage over 5x is toxic.

How do you guys deal when faced with such a situation, please share your comments.
submitted by RunningOftimeout to BitMEX [link] [comments]

Bitmex unjust liquidation

On friday March 12 I placed a 3 btc x10 short order at $4412, unfortunately without realising there was a huge spread of the markprice to the last traded price on the exchange. My margin which was supposed to be 3 btc instantly became less than 0.5 btc upon order execution. This is not how financial derrivatives are intended to work, Bitmex states, on their website, the following:
" BitMEX employs a unique system called Fair Price Marking to avoid unnecessary liquidations in its highly leveraged products. Without this system, unnecessary liquidations may occur if the market is being manipulated, is illiquid, or the Mark Price swings unnecessarily relative to its Index Price. The system is able to achieve this by setting the Mark Price of the contract to the Fair Price instead of the Last Price*. "*
The markprice did the exact opposite of what it is claimed to be doing in my case.
Then I went a little deeper and looked at what happened with the BXBT index on the time I got liquidated (Thu, 12 Mar 2020 23:59:22 GMT ). According to my liquidation e-mail the BXBT index rose to $4922.37 and the markprice (which is based on the BXBT index) rose to $4913.0. I then looked at the BXBT index historical values and specificcaly the high of the 23:59:00 minute candle and to my surprise see that the high was $4861.51 which is far from the $4922.37 which triggered liquidation.
Based on these previous facts I have submitted a ticket and provided the bitmex team with documents that substantiate these facts. I also have requested a refund, but so far all I get is basic answers like what markprice is and what happened during the ddos attacks, which all are not applicable to my case.
I will keep you guys updated if something substantial happens, have a good weekend.
submitted by zeki5555 to Bitcoin [link] [comments]

Long/Short calculations for excel backtest

I'm trying to create an excel sheet for backtesting trading ideas and I'm having trouble figuring out the PnL formulas.
I'm primarily using Bitmex so not sure if formulas are the same across other leveraged trading platforms.
I basically want to have a simple sheet where I can start with a certain amount then go long or short (1x) on each historical price that my chosen indicator signals. Then compound that amount over years to get a simple idea of how a strategy might work if strictly adhered to over a long period of time.
(I'm not including fees for the sake of simplicity at this stage.)
I've tried to reverse engineer the "ministry of margin trading" PnL calculator but can't figure out a few key formulas.
Can someone please tell me what formula I need to add to an excel cell to automatically calculate the profit or loss from a Long or short in Bitmex?
If I'm just simply buying & selling this is easy: =Exit price - Entry price
But with Bitmex PnL calculators the results seem to be quite complicated.
I'm guessing it needs to be = ( (Exit Price - Entry Price) / Something? ) X Leverage

I'd also be grateful if someone can point me towards an existing (unlocked) excel sheet online that I could download for backtesting.

Also very keen to figure out how to code backtests in Trading View, but this is also taking a bit of work. Any tips or links here also greatly appreciated.

Thanks!
submitted by nance8000 to technicalanalysis [link] [comments]

How to get in on the highly anticipated Crypto Derivatives Boom

In March, we saw over $53 billion in crypto derivatives traded in one single day. During the economic crash and while businesses were shutting down, cryptocurrencies saw one of the best months in a very long time. Amidst the turmoil, politicians globally spoke on contingency plans which involved simply printing more cash. With the added fear and lack of faith in current financial systems, many turned to Bitcoin as a safe haven asset.
TokenInsight predicted that the crypto derivatives market will surpass the spot trading scene by as much as 100 percent. As an upward trend in crypto derivatives continues, and more investors enter the space, here’s how you can leverage and take advantage of the opportunities available:
-- Higher liquidity and well management of Insurance Funds
After doing all due diligence, I found out Delta Exchange. Top reasons I choose Delta is - It never faced system overload issue like Bitmex and Binance did in the past & it has 30+ alts listed on the Exchange. I can write tens of reasons but I don't want to make this post. If you want, you can check out the Exchange here Dalta Exchange
submitted by whycantichooseausern to CryptoCurrencies [link] [comments]

Derivative Market Landscape: Daily Trading Volume Over $20 billion and Leveraged ETF Becoming New Growth Point

Exchanges are always in the front line of innovative products. There have emerged such new products and playing methods as IEO, delivery contract, margin trading, futures, leveraged ETF, staking service, etc. since 2019, which injects vitality to the crypto-market and becomes the powerhouse for the innovative development of the blockchain industry.
Compared to the marketing/operation methods with short period effect, derivatives in cryptocurrency market is the most potent weapons that will last a long period. The derivatives are going to a higher level as its trading volume increases day by day. Therefore, the derivatives are becoming another main battlefield that every exchange want to conquer.
PAData analyzed the trading data of the top 5 exchanges with largest market shares on contracts and the 2 exchanges that first rolled out leveraged ETF, to have a look at the performance of derivatives among different exchanges, as well as the product iteration logics in crypto-market.
01
Crypto-market Mimics the Traditional Financial Market
First, the top-layer design of supervision policy makes the crypto-market similar to traditional financial market. Regulators often formulate relevant supervision policies for crypto market based on the rules for traditional financial assets and financial risks as the crypto-market is a newly born behind the traditional finance market, “For example, the licenses for the digital-asset industry often evolve from the traditional ones and become the specific supervision licenses for the industry.” said by an entrepreneur in crypto world with traditional finance background.
Second, the roles of participants in crypto market is also similar to traditional financial market. Except for the different exchanges that take up the lion share of the market, the professional broker, custody institution, loan/lending platform, dark pool, etc. have all emerged.
Third, what crypto market learns most from the traditional market is the product design. The new project subscription, futures, leveraged ETF, contract in the newly-born crypto market are all coming from traditional market. Take leveraged ETF on MXC Exchange as an example. Learned from the ETF mechanism in traditional market, MXC leveraged ETF tracks the daily movement of the crypto underlying asset with 3 times leverage. For instance, if the underlying asset rises 1%, the corresponding ETF products will rise/fall 3%. Essentially, investing on leveraged ETF is similar to purchasing futures fund with leverage. At the moment, MXC launched 3x leveraged ETF products for BTC, ETH, BSV, BNB and other top market cap coins.
Last but not the least, the derivatives, like IEO, ILO, perpetual contract are also coming from traditional market. Are these derivatives suitable for the crypto market? What are their trading volumes?
02
Differential Competitive Edge Among Exchanges
Presently, the main derivative in crypto market is contract, including delivery contract, perpetual contract and some futures contract. Besides, ETF (1x leverage) and leveraged ETF are catching up, taking up some market shares. PAData, based on the ranking list of CoinGekco, picked the top 10 exchanges with largest trading volumes on derivatives to analyze their advantages.
According to stats, 8 among 10 exchanges have business on perpetual contract. FTX, a derivative exchange, has the largest number of perpetual contracts of 30, followed by Gate.io and Binance with 23 and 18 respectively. 7 exchanges roll out delivery contract where OKEx has a total of 135, more than two times of the second place – FTX’s 60 delivery contracts. In addition, Kraken and Huobi DM also launch some delivery contracts.
As an emerging product, only 2 exchanges involve business on leveraged ETF, but the total number of leveraged ETF products has exceeded that of the perpetual contracts. FTX launched 111 ETF pairs, while MXC listed 30 as of December last year. MXC Exchange is famous for “Efficient and Fast”. It can be predicted that more leveraged ETF products will be listed in the near future.
From the allocation of derivatives among exchanges, we can see the differential competitive edge for derivatives has shaped. OKEx is robust on delivery contract, Huobi lays focus on delivery contract, Binance aims for perpetual contract, and MXC seeks development on leveraged ETF.
03
Daily Trading Volume for Contract Over $20 billion
According to the sectional static data of CoinGekco on February 12, OKEx, Huobi, BitMEX, Binance and Deribit are the top 5 exchanges with largest amount of open positions in 24 hours. The total opening positions on OKEx ranked first with amount reaching $1.846 billion. Huobi and BitMEX closely followed with amount over $1 billion respectively. These three exchanges take lions share in the contract market. While the 24h opening position amount on Binance and Deribit is about $400 million respectively, far lower than the top 3 exchanges.
The total amount of opening position for contract is one of the criteria to judge the activeness and liquidity of the contract market, the other is the daily trading volume. According to stats, the 24h nominal trading volume among 25 exchanges breaks the mark of $27.533 billion, among which the trading volume on OKEx, Huobi, BitMEX, Binance and Deribit accounts for 73%, taking most of the contract market.
Though the stats for the 24h opening position amount and the trading volume includes the margin trading, we still can learn that the contract trading volume on some exchanges is very close to that of the spot trading. It fully indicates how popular the contract trading is.
04
Maximum leveraged ETF yields up to 2000%
Although futures trading is very popular, but they are not very friendly to investors. Investors need to master some practical skills, and once the position is closed-out, the losses will be quite tragic. For example, on the evening of February 13, when BTC dropped from about $ 10,200 to about $ 10,100, according to the statistics of the contract emperor, there were a total of 13,400 accounts went close out in just 24 hours, and the total amount of positions in 1 hour reached 82.31 million. Futures have become a weapon for the capitals and make most of us look like a fool.
The high operating threshold and high risk of cryptocurrency investment have always been an important factor hindering cryptocurrencies to enter the mainstream market. In order to find new increments, the exchange has been exploring low-operation threshold, low-risk, high-yield products, this is the inherent logic and motivation for the development of cryptocurrency derivatives. For example, the leveraged ETF launched by MXC is in line with this trend. Investors can buy leveraged ETFs on MXC just as they would for spots, without paying a deposit, and without having to take the risk of liquidation. They can also receive compound interest returns. MXC also incorporates 100% of fee income into its monthly plan to repurchase and burn MX tokens, forming positive investment feedback for the exchange's internal product system.
At present, there are only two exchanges that launch leveraged ETF products on the market: FTX and MXC. According to CoinGekco's statistics, the 24-hour estimated total transaction value (USD) of the two exchanges is close to 4 million US dollars. The single-day estimated total transaction amount of each leveraged ETF product is approximately $ 3.7843 million, and the single-day estimated total transaction amount of 111 leveraged ETF products listed on FTX is approximately $ 3.9346 million.
The average daily trading volume of the top 10 trading pairs on MXC ETF product is approximately $ 320,500, with the highest daily trading volume being 3 times long BSV leverage ETF, reaching $ 529,300. The average daily trading volume of the top 10 trading pairs on FTX ETF product is approximately $ 173,900, with the highest daily trading volume being 3 times long BTC leveraged ETF, which reached $ 326,500. Excluding the impact of the number of products, the estimated daily trading volume of a single leveraged ETF product on MXC is definitely higher.
It can be found that the trading volume of a leveraged ETF with a 3x long position is much higher than that of a leveraged ETF with a 3x short position. The 10 trading pairs with the most trading volume on MXC are all 3x long trading pairs. 9 out of 10 the trading pairs on FTX are also all 3 times long trading pairs, which shows that the current market sentiment is mainly bullish.
In addition, the top ten trading pairs on MXC with the largest trading volume are mainly production reduction tokens and platform tokens, which are more consistent with the current mainstream capital flows. This reflects the best applicable scenario of leveraged ETF, that is, in unilateral or trend markets, the performance and advantages of leveraged ETF will be very obvious, and investors often can receive returns higher than the leverage multiple.
According to statistics, the highest average return [1] of the ten leveraged ETF trading pairs with the highest trading volume on MXC is 611.14%, the lowest average return is -25.8%, and the current average return is 428.96%. Among them, the 3 times long BSV has the highest return to 1998.60% on USV3L / USDT trading pair .
However, FTX's leveraged ETF returns are much lower. The highest average return of the top ten trading pairs is 141.94%, the lowest average return is -90.07%, and the current average return is -2.98%. Among them, the highest return is 3 time short BSV trading pair BSVBEAR / USD yields about 591.38%.

The leveraged ETF products of the two exchanges have huge differences in returns. In addition to currency differences, the factors that affect the returns also include the exchange's risk control system and team configuration. According to the publicly disclosed data of MXC, the leveraged ETF of MXC is managed by the platform or a fund manager recognized by the platform, and the platform announces the fund's net value in real time in order to maintain a high degree of transparency and control risks.
05
The traceability of leveraged ETF’s target has a lot of room to grow
According to statistics, the average daily trading volume of all leveraged ETF trading pairs on the two exchanges is about 21% of the spot [2] single-day trading volume, MXC is around 22.44%, and FTX [3] is around 19.96% . Although the leveraged ETF has not been available for a very long time, its market share are already become significant.
At present, the asset tracked by the leveraged ETF is still a single token. However, in the traditional financial field, the underlying assets tracked by ETF already include stock indexes, style indexes, industry indexes, commodity indexes, currencies, commodities and more. In the future, the innovation of leveraged ETF in the cryptocurrency market can be used in many assets. For instance, only at the underlying level of assets, indexes and currency combinations will all be included.
Competition between exchanges is very fierce. In this case, each exchange must not only compete for products, services, and marketing, but also for updating speed, especially for product innovation and iteration speed. For example, MXC is faster than FTX to launch some much more popular investment targets like reduced production tokens and platform tokens. In addition, in terms of the current competitive situation, first come, first served may become the norm in the market, such as the advantages of OKEx in the futures field and the advantages of MXC in the leveraged ETF field.
Data Explanation:
[1] Here the highest income refers to the instantaneous return from the daily opening price to the highest price, the lowest income refers to the instantaneous return from the daily opening price to the lowest instant price, and the current income refers to the opening price from the daily level to the closing price on February 12. Instantaneous return. Revenue statistics are for reference only and do not constitute investment advice.
[2] Although FTX is a derivative exchange, according to CoinGekco's statistics, ETFs, leveraged ETFs, and other trading pairs (non-futures contracts) are recorded as spot, so the "spot" statistical caliber here is the transactions of non-futures in CoinGekco Correct.
[3] The statistics of FTX leveraged ETFs here excludes 1x leveraged trading pairs.
submitted by SimonZhu666 to MXCexchange [link] [comments]

Long/Short calculations for excel backtest

I'm trying to create an excel sheet for backtesting trading ideas and I'm having trouble figuring out the PnL formulas.
I'm primarily using Bitmex so not sure if formulas are the same across other leveraged trading platforms.
I basically want to have a simple sheet where I can start with a certain amount then go long or short (1x) on each historical price that my chosen indicator signals. Then compound that amount over years to get a simple idea of how a strategy might work if strictly adhered to.
(I'm not including fees for the sake of simplicity at this stage.)
I've tried to reverse engineer the "ministry of margin trading" PnL calculator but can't figure out a few key formulas.
Can someone please tell me what formula I need to add to an excel cell to automatically calculate the profit or loss from a Long or short in Bitmex?
If I'm just buying & selling this is easy: =Exit price - Entry price
But with Bitmex PnL calculators the results seem to be quite complicated.
I'm guessing it needs to be = ( (Exit Price - Entry Price) / Something? ) X Leverage
I'd also be grateful if someone can point me towards an existing (unlocked) excel sheet online that I could download for backtesting.
Also very keen to figure out how to code backtests in Trading View, but this is also taking a bit of work. Any tips or links here also greatly appreciated.
Thanks!
submitted by nance8000 to BitMEX [link] [comments]

Bitcoin and cryptocurrency trading strategy in a panic on the coronavirus.

Bitcoin and cryptocurrency trading strategy in a panic on the coronavirus.
The upcoming problems with banks and the Fed’s money printing are excellent opportunities for cryptocurrencies and blockchain projects. Incredible events are taking place in the stock market, the fastest falling markets in history, the spread of coronavirus in the United States and the likely risk of falling consumer demand, lower consumption and, as a result, recession.
Analysis in such conditions becomes impossible, the position of traders is removed from the market. The Fed’s cash infusion is $ 1.5 trillion per month and the base rate is reduced, as a result, money is poured into the market in order to stop the market from falling, but this may not be enough.

Oil war

In addition, a trade oil war was added to the coronavirus, and this could cause serious problems for US shale oil companies, whose production costs are $ 30–40. The US oil sector is sitting on a wild leverage, and as a result, banks that lend to them can start problems. Thus, is it possible to say that this is perhaps the best moment for cryptocurrency projects that can be competitive in comparison with the banking sector? Well, we still have to find out.

The fall of Bitcoin and the entire cryptocurrency market

Bitcoin’s collapse was stronger than the stock market for several reasons. Well, firstly, the correlation between the S&P 500 index and Bitcoin reached 1. If earlier Bitcoin was associated as a protective asset and did not have a pronounced correlation, now all markets have started to fall during a mass panic. By the way, you can check the correlation of your crypto portfolio for free at Holderlab.io

Bitcoin and S&P500 correlation

The search for liquidity as the beginning of accelerating the fall of cryptocurrencies

The reasons for the strong current decline in the cryptocurrency market may be due to the fact that stock market traders were looking for liquidity in order to maintain margin requirements. In this case, liquidity was sought in risky assets, those Bitcoins and cryptocurrencies, perhaps some traders went completely into the dollar. This is where the first wave of decline in the cryptocurrency market began.

Bitmex Margin Trading

The incoming wave from the reduction of positions in Bitcoin from stock market traders has demolished the position of margin traders on Bitmex. As a result, $ 500 million in long positions were liquidated in an hour, and it remains to be seen how many were liquidated for other trading pairs.

BitMEX XBTUSD Liquidations data from skew.com
As a result, we saw a drop up to $ 3800. A great lesson for those who trade with leverage.
Another curious fact is that cryptocurrency exchanges do not have mechanisms to stop trading, as we saw in the stock markets when there was a limit down on S&P500.

Trading Bitcoin Futures on CME

In anticipation of the elimination of margin positions on Bitmex and other crypto exchanges. Starting February 25, there was an active closing of long positions in Bitcoin futures and opening short positions on the Chicago Mercantile Exchange. Which also influenced the fall of bitcoin as a whole. Cryptocurrency exchange margin traders have become a blast wave for the fall of Bitcoin.

Cryptocurrency trading strategy in a panic situation

Already today cryptocurrencies are sold at a significant discount, but now we are forced to monitor the dynamics of the S & P500 index and the general news background, which can affect the price of Bitcoin. However, in our opinion, the best moment for the Bitcoin HODL is probably coming. Today we see a good discount before the upcoming halving.

Halving zone
Do not expect the best price, it is almost impossible to catch, if it is possible to place pending orders this is good, today you can slowly buy current prices.
Trade managing your risks and do not rely only on luck and leverage.
submitted by holderlab to Bitcoin [link] [comments]

Your Position Has Been Liquidated

I remember reading the post about the guy who almost lost 200btcs. I remember reading the post about the guy who had to quit crypto because he lost it all.
It all sounded funny. "Hah. Noobs!", I thought. They mentioned they lost margin trading, and so I began learning about it.
Such potential! I could double my btc in minutes rather than waiting weeks for an altcoin to pump! I promised myself I would be extremely careful with it and not make stupid greed trades.
After 2 days, I lost 0.3btc. I had 0.7Btc left. Not the end.
I deposit 0.3 more btc. After 1 day, I lose half of it. Then, i manage to go from about 0.15 to 0.6 btc in like 2 days. I got super excited and confident. I could beat the market!
The same day, I go all in with one trade. I wait for a small pump to confirm that a pump will happen indeed. The small pump happens, I go all in. The next second, a crazy flash dump happens.
0.1 left. I transfer my last 0.4 from binance to Bitmex. This was 2 days ago
Guess what happened next?
In 2017, I had 150k in crypto. After the market crash, I was left with 1 bitcoin. 1 bitcoin that i held for 2 years. 2 years gone in about 2 weeks.
I cannot imagine how many people will lose their savings when binance opens up margin trading. So many people already do in Bitmex alone.
What hurts is not losing my portfolio. What hurts is knowing I will probably miss the crypto bull market while I work in a shitty job and try to make it all back.
submitted by Dimax88 to BitcoinMarkets [link] [comments]

BITMEX FX RENT

BITMEX FX Rental Grand Opening Guide
https://t.me/FxBITMEXEnglish
Grand Opening of BitMEX FX Rent Channel using Telegram Channel
This channel is a BitMex FX rental channel that can be used by users all over the world.
Margin trading takes place every 2 minutes in both buy and sell positions, with a 95% exchange rate.
Trading is possible only with Ethereum and boasts a high return.
Let's find out how.
After entering the channel above, start with the / start command
Enter the lowercase letter "gold" for the referral code input (the channel is available only if you have a referral code. If you do not like the referral code, you can enter the default code "1234")
Completion screen
When completed, the corresponding screen will appear and select the language to use.
Currently English, Chinese and Korean are supported.
Enter Ethereum as the deposit address and set the set trade unit. (0.05 ~ 7 ETH)
You can now trade margins by selecting BUY and SELL every 2 minutes.
It's faster and more profitable than BitMEX.
If you wish to issue a referral code, please contact Telegram "cr119". (Ethereum will be paid 2.5% of the user's wager amount)
submitted by goldmex to Imposter [link] [comments]

Amanpuri CEO ISAO FUJIWARA latest interview In March of 2020 part2

part1
https://www.reddit.com/usemimrama/comments/fqk82l/amanpuri_ceo_isao_fujiwara_latest_interview_in/
Doesn’t the dividend put pressure on management?
Kato: At AMANPURI, 5% of exchange earnings are returned to holders of AMAL tokens. Isn’t this putting pressure on management?
Fujiwara: That’s 5% as a figure to not put pressure on the management. It’s easy to tout high numbers to get users interested, but there’s no point in doing so. In fact, many of those exchanges, which they used to excuse various things, are already gone.
We hold a number of events for the enjoyment of our users, as well as dividends, but this too can’t be a management-crushing prize or content. No matter what happens, we will return the surplus funds to the users with a margin that will not affect the management.
So, while the numbers may be less impressive, it’s more reassuring than anywhere else. And I think you will be more satisfied than you ever imagined.
How do we siphon off input from the community?
Kato: It’s important to get feedback from the community, so what kind of measures does AMANPURI have in place to get feedback from the community?
Fujiwara:We don’t take any special measures, but the voices of AMAL holders and users reach the management directly. I believe that AMANPURI is a project that is relatively close to its operation and community members.
All of us members understand how important community is in the blockchain industry. In particular, the holders who have held AMAL since before AMANPURI opened are like shareholders.
However, it does not absorb all opinions. There are many different opinions, but we try not to bend our beliefs. In the end, we believe that this belief is in the best interest of the holder and the user.
If a user needs individual support, they can ask questions in the community and we can look it up and answer them right away. This support system is one of the things that we are always aware of.
Reasons for the delay in starting to offer leveraged trading
Kato: Currently, our leveraged trading offerings have been delayed from the original schedule. If you don’t mind, can you explain the situation?
Fujiwara:We will start offering leveraged trading on March 27, 2020. It was originally supposed to be available in January or February, but due to my selfishness it was postponed by about a month.
While it’s impossible to capture a large share of virtual currency users through physical trading alone, I don’t think we’re going to be able to encompass them right away just by opening up our leverage.
No matter how good an exchange is, it will take time for its usability and transparency to sink in.
We wanted to attract a sufficient number of active traders to open it from the very beginning, not to mention marketing it once we opened it. I was given a month as time to do so. As a result, the number of new accounts opened per day has been growing steadily.
For those of you who were looking forward to the start of leveraged trading in February, I’m sure I let you down a bit, but the March 27th start of leveraged trading should provide plenty of liquidity from the open and make you feel comfortable trading.
AMANPURI’s Roadmap
Kato: What is the roadmap for AMANPURI in the future? Please let us know what’s left before the full opening and if there are any new service additions planned.
Fujiwara: There are a lot of additional features from small to large, so please see the roadmap from the official website for details. In particular, we would like to see the addition of “MAM”, “MT5”, and “Forex stocks”.
Fujiwara:Most active traders and investors are familiar with MAM, but our MAM system is completely different from the MAM system offered in MT4/5 in terms of functionality and transparency. It will be a completely original MAM. It completely limits the risk and allows investors to manage their assets with peace of mind.
The addition of MT5 and forex stocks will simply increase the share of forex traders’ users. Forex currently has more users and a larger industry than cryptotrader. Our exchange will attract a lot of forex traders. We believe this will be the first time in the industry that you can use AMAL for foreign exchange commissions and get a discount on commissions.
We believe that we can provide the most profitable environment for scalpers and short-term traders anywhere. If you’re a currency trader, you may not be familiar with the idea of using tokens for commissions at first. But don’t worry. We have partners all over the world, so they will lecture you carefully and you will soon be talking about it.
A message to those who support you.
Kato: Finally, please give us a message to the people who support Amanpuri.
Fujiwara: We will open leveraged trading on March 27, 2020. Since our exchange is based on the BitMEX business model, the basic features that come with BitMEX are implemented in the same way. That’s why it’s a platform that’s readily accepted by those who are used to trading on BitMEX. It provides a very comfortable trading environment for active traders and botter.
We are an exchange that is based on BitMEX, and we have improved the confusing and difficult to use parts, added features that we wish we had, and improved the service. It is also designed to be easy to understand for those who are just starting out in trading. We invite you to join our community. At any time, you’ll have immediate support from our staff and unique members.
Our exchange is 100% A-book for both virtual currency and currency exchange. Equally and transparently at all times, we can continue to provide an environment that is comfortable for users to trade in.
submitted by mimrama to u/mimrama [link] [comments]

Bitmex Leverage Trading Tutorial For Beginners Bitcoin ... Bitmex Margin Trading Strategy 100x Leverage Tutorial How to Start Margin Trading on BitMex and Tips BitMax.io Margin Trading Basics Bitmex Beginner Guide

Margin Trading. BitMEX offers up to 100x leverage on some of its products. This means that you can buy as much as 100 Bitcoin of contracts with only 1 Bitcoin to back it. But be careful - with high leverage comes accelerated profit, but also the potential for accelerated loss. For certain margin trading pairs, a greater amount of collateral is required to open/increase the position. So if you have 1000 USD in your margin wallet, that 1000 USD will serve as collateral for opening margin positions to a maximum of 5:1. ie a margin position with a USD value up to 5000 USD. BitMex implements the so called P2P trading system and because of that the fees are cut into taker, maker and settlement fees. The margin trading attribute of BitMax is further encouraged by the so called Point Cards. These cards give traders a discount of 50 % for repayment of margin interest. BitMex is one of the most popular and recognized platforms in the cryptocurrency market for margin traders.In this article, we will explain how BitMex works, how to margin trade and how to remain profitable in this volatile market while trading with leverage.It is always worth remembering that margin trading is not for beginners. Traders should always be very careful while trading with Bitmex Margin Trading In Plain English. I’ll start off by defining a few terms that you’ll need to be familiar with in your early stages …. Margin trading — this is the method of conducting a purchase using cash that is provided to you (the trader) as a loan.In reality, you’re not really “borrowing funds” from any centralized entity, you’re merely swapping out “contracts

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Bitmex Leverage Trading Tutorial For Beginners Bitcoin ...

Recently, more and more people are making money by margin trading on BitMex. Probably, that's why we are continually asking questions about the BitMex margin trading. If you enjoyed this tutorial on margin trading at bitmex make sure to pound the subscribe button. Margin trading is a great way to keep your portfolio growing in either a bear or bull market. Join my Private Coaching Program: http://scrembocoaching.com How do you feel about Bitmex Leverage Margin trading ? In this video I am going to show you how ... Link for 10% discount on trading fees for first 6 months - https://www.bitmex.com/register/vGyLvf BitMEX crypto margin trading exchange allows us to leverage... BitMEX Margin Trading – How to trade video tutorial - Duration: 10:40. trading bot 18,791 views. 10:40. Bitmex Leverage Trading Power To Trade 100x Of Your Investment !

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