What is bitmex liquidation bot

Bitcoin Investing Finance Cryptocurrency Bitmex. These are required to make sure that the exchange or broker is not left holding the bag should the position quickly move against you. The greater the leverage, the smaller the loss. Rather than staying glued to BitMex all day, the Twitter account BitmexRekt is useful for keeping an eye on the market. Anthony Xie. And always use a two-legged trade: you Entry trade and a Stop order. Diego Karasik Apr

Don’t interfere when the bot is working

The leverage dynamically adjusts to the position size. We don’t recommend using it as the exchange reverts it to default values regularly. The most you can lose is your Margin. Is it even possible, or would you need more information to do that? This removes the possibility of getting Liquidated, which is highly costly. Make Medium yours. Crypto Analyst. The Anti-Liquidation tool encourages the correct structuring of trades. This may sound like a bit of a mouthful right now but it helps to take a look at some examples as well as some actual numbers. A marker-maker is defined as someone who places a Limit order and does not take the market price to open or close a trade. From these two numbers, one is able to get an idea of the initial margin as well as the MMR that is being applied to that trade. Put another way, the MMR of 10x leverage position is only 4. The above tables also show that even with the minimum 1x Leverage there is a small but real risk of Liquidation when Long.

How BitMEX Margin Works

When your position is getting closed at a liquidation price that is further away from the bankruptcy price, you are being denied extra price participation and the chance for a market recovery. With leverage up to x your initial investment, traders relish the high-risk, high return nature of the exchange. The BitMEX site encourages you to trade what this way:. Their risk management bitmex comes at the expense of your long-term trading profits. Not that anyone would use 0. This should improve your confidence in its results. This is the maximum you can lose. The REKT account is part schadenfreude, part warning: trading cryptocurrency is risky, and people can lose large sums of money. Add fund button will be available in the future. Setting the leverage and placing a base order are two separate requests. Liquidated, the new deal status It means the BitMEX engine liquidated the position, and all its margin lost. I think the max is like 25x. Author: Liquidation Puckrin. The Anti-Liquidation tool encourages the correct structuring of trades. You might well get Stopped Out but this is less costly as you then make bot charity payment to the Insurance Fund. Volume limit doesn’t work.

The bot doesn’t take funding into consideration

However, BitMEX is a profit maximising futures exchange. If we want to close a short, the stop loss is a buy operation above current market price. It is damn easier to follow your Premium Bitmex Group Signals. That edge ix the amount by which BitMEX will allow the trade to eat into the initial margin before they liquidate it. The profit currency can be only in the quote currency as there is no USD balance. This is an example of a short trade shown in trading history Click on the image to view full size :. This is the last column in the sheet and this shows that for larger leveraged trades, the MMR makes up an increasingly greater percentage of the initial margin. When your position is getting closed at a liquidation price that is further away from the bankruptcy price, you are being liquidstion extra price participation and liquidxtion chance for a market recovery. If you increased the size, then the bot will close the position only partially. One more example, if we open the long with liqiudation leverage, the liquidation price would be 66,66 and the profit would be 3x in the case the trade is profitable.

BitMEX 101

We use cookies to improve your experience on this website. In this case the liquidation price is 0. See trades in action from the premium signal. Put another way, the MMR of 10x leverage position is only 4. Trading on exchange is often cluttered and confusing. If you increased the size, then the bot will close the position only partially.

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