7. BitMEX Short Selling

In the stock market, it is not easy for individuals to short sell.

 

This is because individuals, unlike institutions, do not have high credit.

 

It is difficult to short-sell stocks by borrowing them in advance.

 

The reason for futures products like the BitMEX exchange is 'short selling', the flower of margin trading.

 

Cryptocurrency futures exchanges use their cryptocurrency as collateral

 

It is designed to make short selling easy.

 

This gives you the opportunity to make money in both bullish and bearish markets~

 

How to Short Sell on Bitmex Exchange!

 

The only difference between short buying and short selling is the direction of the investment.

 

A short bet on the upside and a short sell on the downside.

 

So, everything is the same except for the method of short buying and the selection of the investment direction.

 

 

1. Choose the order method you want!

 

The order methods you can choose from are Limit, Market, Stop Stop, Stop Stop Order, Track Stop Loss, Take Profit Limit and Take Profit Market! To learn more about each order method, please refer to the previous post on how to place an order in BitMEX!

2. Enter the amount to be invested in "Amount".

 

For this example, I will choose the market price. And enter the amount you want to trade in "Quantity"!

 

3. Set the leverage multiple you want to use.

 

If you have entered the order method and transaction amount, you can set the leverage this time. If you do not want to use leverage, you can use the default multiple of 1. To set leverage, just click on the small circle on the gauge and move it left or right! I have set 5x leverage as shown in the image below~

 

4. Click the Short Sell (red) button to place your order.

 

Once you have set up your leverage, you can now place your order. Short buy is on the green button and short sell is on the red button!

 

 

This time, I will explain in more detail based on the actual short selling transaction screen in the past!

On the BitMEX exchange, Bitcoin was short-sold at $12727.50 at market price.

If you place an order at the limit price, the transaction cost can be lowered, but it may not be concluded.

The market price has a relatively high transaction cost, but has the advantage that the transaction is executed immediately.

 

 

 

 

Once the order is placed, the details appear directly on the position screen.

 

We will revisit each term below!

 

 

1.Symbol

 

- It means the symbol of the coin you traded. XBT is Bitcoin and ETH is Ethereum.

 

2. Size

 

- It refers to the size of the amount entered into the position.

 

3.Value

 

- It is a number calculated by dividing the entered amount by the current price (scale/entry price).

 

4.Entering Price

 

- The entry price means the price at which you entered the position.

 

5. Market Average Price

 

- The market average price is the average of the prices traded on multiple cryptocurrency exchanges.

 

6.Liquidation Price

 

- The liquidation price is the price at which a position is entered and all funds are forcibly liquidated.

 

7.Margin

 

- Margin refers to the leverage multiplier used.

 

8. Unrealized PROFIT&LOSS (ROE%)

 

- Unrealized PROFIT&LOSS means the amount of profit or loss in the position you entered.

 

9. Profit and Loss

 

- Realized PROFIT&LOSS refers to the amount of profit or loss after closing the position.

 

 

 

 

As shown below, when you enter a position using 25x leverage, the unrealized P&L shows huge fluctuations. You have to be careful as the loss can be very large as much as you can generate more profit. And the liquidation price of this position is $13421, so you need to keep the position while monitoring the price change!

 

 

 

 

We will close the transaction at the market price as we believe we have earned enough profit!

 

I earned 86.87% of unrealized P&L.

 

Click the red button that says 'Market Price' on the right to get the market price!

 

 

In this way, I made a short sale on the BitMEX exchange!~

 

Next time, we will guide you about margin call!

Margin call has the same meaning as forced liquidation, and you must know it before doing margin trading!

Click BitMEX Margin Call for more information!