BitMEX guide on how to start leveraged Bitcoin trading. We explain BitMEX fees, calculator P&L, testnet and give you tips how to trade safe!

BitMEX odbierz zniżkę 10% na 6 miesięcy

a) BitMEX fees and commissions explained

b) BitMEX calculator

c) Registration on the exchange

I. BitMEX fees explained

 

To explain to you Bitmex fees you need to understand that you will get rebates when selecting a limit order! Bitmex fees and commission are quite low comparing to Bitfinex or Binance.

 

Bitmex fees are not related to leverage but to quantity. What is the cost of using leverage? Margin trading is free of cost at BitMEX.

 

 

 

1. BitMEX fees at the most traded contracts:

Bitcoin Perpetual (XBTUSD) / Ethereum Perpetual (ETHUSD) contract, and Bitcoin Futures Contracts (XBTU21 and XBTZ21)

 

a) BITMEX MARKET ORDER FEE is 0,075% (you pay)

With our 10% discount rebate the cost is 0,0675%. This a more expensive option to open or close your trades. Investors call this order... a taker order.

 

When should I use Market Orders (taker order)?

Use a taker order when you want to buy/sell out of hand. Fast! If you can wait and observe use maker order (limit order) as there is a huge difference in commissions!

 

 

To explain BitMEX fees this let's analyze the following case study:

 

Example A:

 

You expect that the Bitcoin price will explode in a few seconds. You buy quantity 50,000 of USDXBT contracts worth (1$ each) means that you open (buy long - green button) 10 BTC at price 5000$.

 

You used market order to buy these contracts ASAP. Fees? 50,000$*0,075% = 37,5$ (fees are deducted in BTC)

 

 

With a discount coupon, it would be only 33,75$. Explained? 4$ saved!

Do not be confused as in the Bitmex trade history you will see this fee in BTC as:

fee paid 0,00675 BTC (or 0,0075 BTC without our link).

Screen from BitMEX account without a discount. 0,075% fee taken for a market order. Click to make it 10% less!

 

b) BITMEX LIMIT ORDER FEE is +0,025% (you will get paid rebate)

 

This is the cheapest option for open or close trades. Yes, you will receive money for submitting this kind of orders!

 

You can this type of orders you can use when you are not desperate to make trade straight away or ever. Investors call this order a maker order.

 

Using maker order you can not be sure you will get an order at this price. Theoretically, you can wait even…years to get fulfilled.

 

You will get fee rebate, but you must wait until somebody else TAKES your limit order from the order book by…taker order. Practically it is not so hard to fulfill the order limit so use this as often as possible to collect a few dollars instead of paying. To understand Bimex limit order fees look at this:

 

Example B:

 

You desire to short contracts value 5 Bitcoins @ 10,000$. The last price of Bitmex bitcoin perpetual contract is 9,997$. You inserted limit sell order offer into order book (quantity = 50,000 of USDXBT contracts) at 10,000$ and you wait until it is fulfilled. But If Bitcoin price starts dropping (without reaching 10,000 price point) you can never get this trade executed. This is not so comfortable that is why you will get paid for your patience. When somebody "takes" this order, you will receive from Bitmex 12,5$ (it is hard to call it fee it is rebate!) In the trade history, it should display these figures with green font fronted by minus: fee paid -0.00125 BTC. At Bitmex...when it looks exactly like this it is ok. When it is just like example 1 black font and without minus it means you paid – using a market order. This is very confusing, and you must remember this explanation.

 

If 1 BTC at 10,000$ is traded:

Taker (by market order) paid 6,75$ (in rush)

Maker (by limit order) got 2,5$ (no rush)

Bitmex income is 6,75-2,5= 4,25 USD

 

Read our full Bitmex platform guide with a lot of examples

 

 

2. Bitmex fees explained at altcoins futures contracts vs BTC (U20 – expiring at 28th September 2018 then will be Z20 – expiring at 28 December)

BTC vs Ethereum (ETHU20)

BTC vs Bitcoin Cash (BCHU20)

BTC vs Ripple (XRPUU20)

BTC vs EOS token (EOSU20)

BTC vs Cardano (ADAU20)

BTC Tron (TRXU20)

BTC Litecoin (LTCU20)

 

BITMEX MARKET ORDER FEE is 0,25% (you pay) With our 10% rebate referral link fees are 10% discounted to 0.225% Use this taker order only when you want to buy/sell promptly as hell for instance when your trade is close to liquidation price. If you are not in the rush and it is much more cost-effective at Bitmex to make an order (limit order). Rush or no rush it is always good to explain your order choice.

 

Example C:

 

You sold 14 futures contracts BCHU18 at 14.22 (contract value 2BTC = 20,000$) you pay 64$ or with referral rebate only 57.6$. In this case, let’s say the BTC price is about 10,000$. As above, a misleading factor is that this amount you will see in your trade history as the fee paid 0.00576 BTC (or 0.0064 BTC) Black font without a minus. But you paid.

 

 

BITMEX LIMIT ORDER FEE+0.050% (your rebate)Yes, it is a lot at Altcoins! This limit order you can use whenever you do not have to join or leave the market rapidly. Using maker order you are never 100% sure you will buy or sell at your desired price ever! As this price can not be traded anymore. Finally, if you are aware of how huge is altcoins market volatility is, MinistryOfMarginTrading does not have to explain to you that in 95% of cases you will get a limit order fulfilled sooner or later!

 

Example D:

 

You want to buy long 24 futures contracts Ethereum (ETHU18) at price 0.08314 (contract value 2BTC = 20,000$) and now BTC/ETH futures are traded at 0.08332. You insert by limit order into orderbook and wait. You make a buy long offer at 0.08314 and you gently hope that fulfill. Keep in mind that if BTC/ETH futures price starts increasing (without dropping into your selected price range) it could be never ever executed. But when it got filled (when somebody “takes” this from you) you get a fee of 10$ in this case (20,000*0,05%) That is very misleading; you will see this cash in Bitmex trade history as fee paid -0.0010 BTC (green font with a minus at front). But you gained. This is the case where your profits from Bitmex commissions (rebates) are the largest.

 

 

Screen from my account how fees limit orders looks in trade history. I traded TRX

 

3. Bitmex special types of orders explained (you can add it as a part of original orders)

 

Hidden orders - You can hide your orders at Bitmex but keep in mind that when this trade is executed you pay the fee as taker despite the fact you took it into order book. Hidden orders are sometimes used by deep pockets investors who place millions of USD per trade but there is no point in using it when you do not own more than 100 BTC. Expensive toy for big boys.

 

Stops orders - You will usually pay as for maker order as when it hits your set price and you want to execute such trade fast as hell. Use this stop order to defend your trades from liquidation! Cut your losses and control. This is basic and extremely important. To understand it, Ministry recommends: Read more how to set a correct stop loss to avoid liquidation.

 

Post-only – Many traders like us, combine limit order and checked post-only. They often use for “safer” scalping on Bitmex. It reduces Bitmex fees! It protects you from random execution by market order instead of limit order when in the last nanosecond the price changes. It is worth implementing and Ministry of Margin Trading encourages you to use it as often as possible as well. Adding this checked post-only is free and provides you cheaper trades.

Especially, when you add an order close to the last price. Sounds good? Execution only by limit order or immediately canceled – and finally never executed by a market order.

 

Summary of Bitmex fees and commission.When to use maker order (limit) and when taker order (market)?

 

It is possible that you will never ever pay any trading fee at Bitmex. It is possible that you will get paid for every single trade. Why it is not so popular? It is how it must be: 50/50. Somebody pays a fee using a market order and another trader gets paid as he did limit order. It is always matching of 2 traders on Bitmex when there is a P2P exchange.

 

Everything depends on your strategy. Let’s consider scalping at Bitmex. A trader who is a scalper often uses a market order to execute a trade ASAP. Scalpers just observe BTC price at other exchanges and when there is a huge price difference comparing to Bitmex they buy/sell immediately using market order to jump and take advantage. They paid let’s say 4$ commission fee and 3 seconds later close this trade with a 20$ profit. In this case, it is worth to use a market order.

 

Advanced traders are fully aware of these above. Sometimes during huge volatility and it is much better to pay and use a market order. You have to constantly consider what is more cost-effective for you. Sometimes when you wait 20 seconds to fulfill the limit order (to save 30$) and finally you lose at least...100$ as the price went in a different way.

 

Keep in mind this is interesting...

Did you know that: If you sell a short BTC at 10,000$ and buy it back at 10,004$ you are not losing if you used twice limit orders twice? You are sill 1$ up. You lost 4$ at Bitcoin price but you won 5$ at Bitmex fees 😊

This BitMEX guide on how to start margin trading will explain you step by step: how to use leverage, fees, and will show you profitable strategies. BitMEX is absolutely the most traded leveraged exchange in the world of futures and perpetual Bitcoin contracts. Begin your trip with BitMEX trading wisely!

 

Here is an interview with CEO of MinistryOfMarginTrading concerning how to begin investing on BitMEX.

 

 

#1 Beginner:: How would you explain to me BitMEX exchange using just one sentence?

 

MinistryOfMarginTrading: This is an advanced leveraged platform where can make 100% profit when Bitcoin price will change 1%. BitMEX gives huge possibilities for profits for all investors who know what will happen at the market.

 

BitMEX platform: comfortable interface settings

Interview with CEO of Ministry Of Maring Trading - WHY BitMEX?

 

Here is an interview with CEO of MinistryOfMarginTrading concerning how to begin investing in BitMEX.

 

 

#1 Beginner:: How would you explain to me BitMEX exchange using just one sentence?

 

MinistryOfMarginTrading: This is an advanced leveraged platform where can make 100% profit when Bitcoin price will change 1%. BitMEX gives huge possibilities for profits for all investors who know what will happen at the market.

 

BitMEX platform: comfortable interface settings

#2 Beginner: Ok I got it. Is BitMEX like Forex broker? I heard that Forex Brokers provide 100x leverage or even 500x and a lot of investors lose money.

MinistryOfMarginTrading: BitMEX is Peer to Peer contracts exchange. This means BitMEX doesn’t care if you are profitable or not as they are making money on fees. Forex brokers often earn when their own clients lose the deposit and this is a conflict of interest as you are trading virtually for real money against... your broker.

 

BitMEX is not a broker, it is an exchange which just matches two traders when one wants to earn on surges and another who wants to earn when the price drops. Somebody loses, somebody wins.

 

On top of it, BitMEX provides full order book where you see online all limit orders and previous trades second by second. It makes BitMEX 100% different than Forex. My guide is: you must be smarter than average to be profitable.  

#3 Beginner: Ok You explained that BitMEX is market neutral but there is also 1:100 leverage on Bitcoin and it can be very dangerous for newbies.

 

 

MinistryOfMarginTrading: Correct, it is a kind of risk. Let me explain it to you. The main difference is that using BitMEX platform you can choose and select your leverage from 0,01x up to 100x. Nobody forces you to use 100x

 

I use 100x too not to often and only in a case to do a quick arbitrage with a small deposit. When you start BitMEX margin trading on Bitcoin or Altcoins you must keep self-discipline and use leverage maximum 10x. I recommend 5x during the first 2 months.

 

We prepared for BitMEX traders special calculator in excel to calculate all profits, fees, liquidation price before you open a trade. It's a very useful free tool. Manipulating blue cells:  1. contracts quantity 2. leverage 3. entry price 4. close price calculator will display you 4 different scenarios at BitMEX. The same calculator is for Ripple (XRP).

#4 Beginner: How does BitMEX leverage work? Please explain and tell me how much I can gain or lose?

 

MinistryOfMarginTrading: The worst scenario that you can see in our BitMEX calculator is that you can REKT and lose the whole deposit (estimated liquidation price). At the moment when mark price will hit liquidation price. BitMEX has NBP implemented (negative balance protection).

 

On the other hand profits on BitMEX are unlimited – literally: the sky is the limit. The biggest problem on BitMEX is to open a trade at the right time, timing is the key word here.

 

For example, recently in three days, Ripple future contract price exploded from 0,00004242 BTC to 0,00013215 BTC it is more than 200%. With 10x leverage, if you invest $2700 in the day3 you would have PNL almost $60 000.

 

It is extremely uncommon to open trade like this at the beginning at the bottom, but you can jump to fast train like this few minutes later and still earn a lot.

#5 Beginner: How does BitMEX leverage work? How much I can gain or lose? Examples, please. How to short Bitcoin on BitMEX to earn when a price declines?

 

 

MinistryOfMarginTrading: Margin trading on BitMEX allows you to open large trade with the smaller amount required. Leverage on BitMEX is cost-free. If you want you can open a trade worth $10 000 owning only $1000. It means that you use 10x leverage. In this case, if a price changes 1% you gain or lose 10% of your deposited $1000. The only difference between long and short is that you have to click another button.

 

 

An example:

BTC price now $10 000

 

You own $1000 and want to short Bitcoin. On BitMEX platform you choose leverage 1:10 and contracts quantity 10 000 which means that your trade value is 1BTC. Your liquidation price will be close to $9050.

 

 

Another Trader has $5000 and wants to earn on surges (long). He chooses 1:2 leverage and the same 10 000 contracts quantity which means that his trade value is 1BTC as well.

Liquidation price in his case will be about $5050.

 

You are matched now on BitMEX. You earn $10 – he loses $10, and when you lose $300 when he wins $300. So simple. If you want to close the trade, you can do it anytime and BitMEX will match this trader with another investor.

 

If Bitcoin price drops $400 you earn $4000 as you are short, and he loses 4000$ as he has the same quantity of XBT contracts. We explained BitMEX leverage with more examples here.

#6 Beginner: What other pairs and products can I trade on BitMEX? I mean apart from Bitcoin?

 

 

MinistryOfMarginTrading: On BitMEX the most traded products are perpetual contracts for Bitcoin and Ethereum. Perpetual means that it will never expire. Futures for Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Tron, Cardano, Ripple, EOS Token are expiring every 3 months.

 

If you go short or long using Bitcoin Cash futures, you bet which currency will react better.

 

For instance, pairs like Bitcoin Cash vs BTC futures price is 0,1000 ($600/$6000) where $600 is Bitcoin Cash price and $6000 is Bitcoin price. When BCH price rises 10% to $660 and BTC rises 5% to $6300 then the contract is traded at 0,1047.

 

BCH gains more in % then BTC that is why the price of the contract raised about 4,7%. On the chart below you can notice a very clear trend of how Bitcoin Cash loses versus Bitcoin day by day. 

#7 Beginner: Is BitMEX platform legit? Is BitMEX exchange a scam?

 

MinistryOfMarginTrading: BitMEX was founded in 2014 and is the biggest by volume leveraged exchange to trade futures and perpetual contracts in the whole cryptocurrency world. 27th July turnover exceeded 1,000,000 BTC in 24 hours it means BitMEX broke its own BTC trading volume record.

 

Everyday trading volume is several billion USD, so I think this is the best proof that Bitmex is legit. Sometimes you can find traders accusing BitMEX to be a scam as they were not aware of all details of how to start trading at BitMEX exchange.

 

This exchange requires training as it is not easy. It may look easy.

#8 Beginner: How to start BitMEX trading? I need a tutorial or a guide with an explanation step by step. Does BitMEX allow for demo trading?

 

 

MinistryOfMarginTrading: This website is about margin trading investments so here you can find a lot of BitMEX guides. BitMEX has Testnet (demo) – more you can learn here but it is a huge difference between BitMEX demo vs live account. You can learn a lot of bad habits trade on BitMEX Testnet because It was created for bot developers. 

 

I learn this platform for $5. I registered on BitMEX without any KYC and ID and I sent 0,001 BTC first as I was very suspicious. In the right corner of BitMEX platform (close to your nickname), you can change displays BTC for Satoshi which I recommend on the beginning. 0,001XBT it is 100 000 XBt.

 

It is a very useful guide when you start BitMEX trading. You will see deposited BTC on your account after just one blockchain confirmation.

#9 Beginner: Why I should first deposit into BitMEX only 0,001BTC?

 

 

MinistryOfMarginTrading: I have 10 years of experience in trading: shares, bonds, forex and futures, and BitMEX platform caused me some problems on when I started.

 

Even my friends who have been trading at Forex MT4 since years often called me to explain to them some BitMEX features. It means that there is a very high probability that you will lose all your first and second deposit. I am more than sure that you need 2-4 weeks to understand leveraged trading and how to calculate profits on BitMEX.

 

This is an exchange for professional traders. What is more, sometimes BitMEX expects downtime or displays information that system is currently overloaded - and you cannot execute your trade. We take it as an advantage because it affects all traders.

 

And what would you do if you invested all your money and you couldn't close the trade? 

#10 Beginner: Do you want to scare me?

MinistryOfMarginTrading: Yes, I do 😊

 

#11 Beginner: Explain to me what I should do after registration at BitMEX. BTW how long does it take?

MinistryOfMarginTrading: Registration at BitMEX exchange takes 5 minutes, then:

 

1.      Change leverage to 5x

2.      Deposit 0,001BTC

3.      Change displaying for Satoshi

4.      Open a trade with quantity 20 using limit order than close using a market order

5.      Click trade history and check if you opened an account with a discount

#12 Beginner: How to get BitMEX fees discounts? I mean how to get BitMEX rebates?

 

MinistryOfMarginTrading: There is a huge difference at BitMEX in fees between taker and maker orders. In general, if you want to open/close trade now and this is rush, you pay fee 0,075% (market order).

 

If there is no rush you can use a limit order to get 0.025% fee rebate from BitMEX.

 

 

10% discounted BitMEX account in trade history will display 0,0675% (taker fee). You save 1$ on every 10$ spent on commissions. The rule is simple: everybody who registers through this link will get 10% discounts for the next 6 months.

 

Registration without the link is also possible but BitMEX will be charging you with higher fees every single time you use a market order.

 

Check it exactly on the examples Bitmex fees explained here as other futures (BCH, ADA, EOS, XRP, LTC, TRX, ETH) have bigger fees and rebates! (0,25% and 0,05%). 

#13 Beginner: Earning on BitMEX fees rebate? Does any other exchange pay you for executing trades? How does BitMEX earn if they pay me for trading on their platform?

MinistryOfMarginTrading: The most popular crypto exchanges don’t offer rebates like BitMEX.

 

In the case scenario, Coinbase offers limit orders (maker) for free. Small exchanges similar to BitMEX like Deribit have almost the same fees offer but there is a lack of liquidity. BitMEX has the biggest liquidity in the whole crypto world.

 

This exchange is crushing all competitors by traded volume. BitMEX pays 0,025% for limit orders and charges 0,075% (-10% discounts) for market orders. 0,0675% - 0,025% = 0,0425% We can say BitMEX earns about 4$ when 1BTC is traded at $10,000.

#14 Beginner: What it the best profitable strategy to earn at BitMEX?

 

MinistryOfMarginTrading: You can use at least different 10 strategies.

 

Profitable? Some strategies can just work for a week or work in some very specific circumstances. It depends on your balance, time, character, knowledge and experience. Advanced traders use a different strategy than BitMEX newbies. New starters they don’t know what they don’t know. Most of the time beginners base on technical analyses.

 

My guide is: it is very hard to invest just base on chart and volume – you need more. Advanced traders at BitMEX do not try to predict what happens – they know what will happen as they are observing several exchanges at the same time and try to take advantage by arbitrage. We wrote an interesting and controversial article on how to join to top 10% traders.

#15 Beginner: But I don’t have an idea what is arbitrage I want to earn because I expect that Bitcoin price goes to $9000.

 

MinistryOfMarginTrading: Are you sure? :) Check our on-line BitMEX trading Webinars.

 

Here you have an example in our BitMEX excel calculator for Bitcoin and other altcoins how to simulate when you want open long. Look below at the screenshot.

 

The same quantity  = 12000 means the same BTC trade value 2BTC (12000/6000)

Scenario A –leverage 5x, deposit taken 0,4BTC (cost) , liquidation price 5025 (quite safe)

Scenario B – safe, leverage 10x, the deposit is taken 0,2BTC, liquidation price 5482 (risky)

Scenario C – risky, leverage 25x, the deposit is taken 0,08BTC, liquidation price 5798 (very risky)

Scenario D – death, leverage 100x, the deposit is taken 0,02BTC, liquidation price 5970 (very risky)

 

Advanced BitMEX traders sometimes use margin cross and put at risk all deposit.

Look how near is liquidation price when you go x100 leverage. Remember liquidation at BitMEX is the worst that can happen to you as you lose much more than you should.

#16 Beginner: Can we compare BitMEX profit for x10 leverage manipulating close price?

 

MinistryOfMarginTrading: Yes, we can, look below. As you see if you don’t hit liquidation price which is about 10% lower than it is your entry. 

 

Your BitMEX profits are unlimited and depend on XBT quantity. If you do not understand something and want to know more BitMEX strategies e-mail us to get an invitation for Webinar training about trading leveraged Bitcoin on BitMEX.

 

We help all investors who registered with BitMEX using our link with discount. We are observing the market all day long and trade only several times per day, so we talk a lot with investors who are with us.

 

#17 Beginner: How can I monitor my profits at BitMEX platform? I have to know how much I earn :) 

 

MinistryOfMarginTrading: There are several ways to check your PNL:

1. Every day you can check profits in account wallet (below left)

2. When you close a trade, compare an actual balance to the previous one

3. Go to trade history and copy date to our BitMEX calculator. 

4. Trade history and using pen and your notebook if you are good at maths ;)

5. Place your mouse cursor over the PNL (below right)

#18 Beginner: Finally, the best tricks or guidelines on how to use BitMEX platform?

 

MinistryOfMarginTrading: If you scalp on BitMEX it is very useful is to checkbox about all liquidation at the platform. You will get a little annoying notification but extremely useful for profitable trading, especially, when you scalp a lot. This is one of the best BitMEX tips, look below and enjoy:) 

 

Bitmex the best guide - alert on liquida

All information, tutorials, BitMEX guides contained on this website are only private opinions of the authors and you should not consider this as investment advice.

 

Margin trading on cryptocurrencies like Bitcoin especially with high leverage can be dangerous for some investors. This website works only for educational purposes and every trader invests on his own risk.

© 2017-2020   www.MinistryOfMarginTrading.com   

 Contact us: Ask@MinistryofMarginTrading.com

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