16. How to Calculate BitMEX Revenue

Trading is ultimately about making money.

 

In exchange for taking risks by exposing my valuable assets to volatility

 

It can be used to realize revenue for consumption or to purchase other assets.

 

Cryptocurrency is an asset class that is inherently highly volatile.

 

The act of using leverage by using margin on highly volatile assets is not

 

It is amplifying to greater volatility.

 

use leverage as leverage; 

 

Or use it as a bomb... that's entirely up to the trader.

 

 

 

The way to control this is to continuously observe the profit and loss of the position you entered. Excitedly jumping or burning in a situation where you do not know your own profit or loss is a shortcut to failure.

 

You need to understand your own profit and loss and manage your risk by mechanically making a stop loss or profit loss. In this time, we will learn how to calculate profit or monitor profit and loss on the BitMEX exchange.

 

 

 

You entered a position either up or down while trading on BitMEX margin.

 

Now, how do you know the profit or loss of a position?

 

If you look at the image below, you can see a tab called 'Unrealized Profit and Loss (ROE%)'.

 

Hover your mouse over here to see the actual profit and loss!

 

 

 

 

 

 

 

 

 

 

 

I'll explain it with a real example here!

 

The image below was short-sold by me for $ 8212.

 

The current price of BitMEX is $8214, so there should be some loss.

 

Below you can see it is marked as Revenue.

 

This is based on the market average price (average price of several other exchanges).

 

This is because we calculated the profit that would be obtained by closing the position now.

 

Therefore, the unrealized profit or loss (ROE) is now displayed as 2.46%.

 

 

 

 

 

 

 

 

 

Are you confused? Fine.

 

Then, as mentioned above, we will hover our mouse under the unrealized profit and loss (ROE%) tab.

 

 

 

 

 

 

 

If you hover your mouse over unrealized P&L here, it is negative at -2.46%.

 

 

 

Before moving the mouse + If the profit rises - The reason for the minus!

 

- When entering a position, enter the market average price (average price of multiple exchanges).

 

- When liquidating a position, it is liquidated at the BitMEX average price (average of bid/ask prices).

 

- Therefore, the actual P&L is the unrealized P&L when hovering over the ROE tab with the mouse.

 

 

For those of you who are quick to see, "Huh? Then, if the difference between the market average price and the BitMEX average price is large, is it immediately arbitrage trading?" You can say However, the gap between the two is not as large as expected, and there will be losses in case of entry and liquidation at the market price, and the designated price may not be concluded.

 

And the price may fluctuate in the meantime. Algorithm traders can use this disparity to execute trades at super-fast speeds, and it looks like a promising trading opportunity!

 

 

 

If these words are difficult, just remember this one thing!!

 

 

'The unrealized profit and loss raised by the mouse is really my profit and loss %'

and

'Let's look at the market average price when entering and the average price of BitMEX when exiting!'

 

 

 

 

 

Next time, I will review BitMEX margin trading from start to finish.

 

Let's find out more in-depth

 

If you want to know more about BitMEX margin trading, please click here!