BitMEX fees explained - June 2020

Updated: Jul 15


To explain to you Bitmex fees you need to understand that you will get rebates when selecting limit order! Bitmex fees and commission are quite low comparing to Bitfinex or Binance. Bitmex commissions are not related to leverage but to quantity. What is the cost of using leverage?

Margin trading is free of cost here.




1. BitMEX fees at the most traded contracts:

Bitcoin Perpetual (XBTUSD) / Ethereum Perpetual (ETHUSD) contract, and Bitcoin Futures Contracts (XBTU20 and XBTZ18)


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

With 10% discount rebate 0,0675%. This is more expensive option to open or close your trades. Investors call this order a 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 this Bitmex fee this let's analyze the following case study:


Example A:


You expect that 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 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).


Look at black font without minus.

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

BITMEX LIMIT ORDER FEE is: +0,025% (rebate) This is the cheapest option of 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 as maker order. Using maker order you can not be sure you will get order at this price. Theoretically you can wait even…years to get fulfilled. You will get fees rebate, but you must wait until somebody else TAKES your limit order from order book by…taker order. Practically it is not so hard to fulfill order limit so use this as often as possible 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$. Last price of Bitmex bitcoin perpetual contract is 9,997$. 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 start 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 this 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 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 plaform 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 explain of you 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$. In this case let’s say BTC price is about 10,000$. As above, misleading factor is that this amount you will see in your trade history as: fee paid 0.00576 BTC (or 0.0064 BTC) Black font without minus. But you paid.



BITMEX LIMIT ORDER FEE+0.050% (your rabate)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 you that in 95% 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$) and now BTC/ETH futures are traded at 0.08332. You insert by limit order into orderbook and wait. You make a buy long offer at 0.08314 and you gently hope that fulfil. Keep in mind that if BTC/ETH futures price starts increasing (without dropping into your selected price range) it can be never ever executed. But when it got filled (when somebody “takes” this from you) you get fee 10$ 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 minus at front). But you gained. This is the case where your profts from Bitmex commissions (rebates) are the largest.



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 fee as taker despite the fact you took it into orderbook. 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 recommend: Read more how to set 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 order close to the last price. Sounds good? Execution only by limit order or immediately cancelled – and finally never executed by 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 trade fee at Bitmex. It is possible that you will get paid per every single trade. Why it is not so popular? It is how it must be: 50/50. Somebody pays 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 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 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 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 market order. You have to constantly consider what is more cost effective for you. Sometimes when you wait 20 seconds to fulfill limit order (to save 30$) and finally you lose at least...100$ as price went in a different way.

Keep in mind this is interesting...

Did you know that: If you sell 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 😊




Related topics:


1. Bitmex leverage explained with examples

2. Bitmex calucluator prepared in Excel file to calculate everything before you open you trade.

3. Training and Webinary how to use Bitmex platform guide + psychology of investment + Bitmex the best profitable strategies

4. Read our full Bitmex plaform guide with a lot of examples


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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