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What You Need to Know About Your First Trade |
Tradeview – Your first trade can be quite exciting and nerve-wracking at the same time, especially if it’s your first day as an investor in the stock market. If you’re unsure about what to expect, though, you might end up making some serious mistakes that could cost you a lot of money in the future – or even in the short term! This article is designed to help new traders through their first stock market trade and put them on the right path to long-term success by avoiding common pitfalls along the way.
Understanding BitMEX
One of the first trades you should learn is how to do so on BitMEX, an online futures trading platform. BitMEX facilitates currency-based futures contracts and allows traders to go long or short on margins. This contract is always highly leveraged; meaning that the value of the position must be 20 times larger than the margin being used in order to be properly collateralized. The leverage changes based on what your position size is. So if you are going long with 1 bitcoin, your leverage will be 100x, but if you are going short with 10 bitcoins then your leverage will be 10x. The fees for a trade on BitMEX can vary depending on which type of trade (buy/sell)
Getting Started with BitMEX
Your first trade might seem difficult at first, but with some help you’ll be trading like a pro in no time. We’ll go through the basics of trading bitcoin (and other cryptocurrencies) on BitMEX and provide some resources for new traders that should make the process easier. Ready? Let’s get started! The whole process starts by depositing your desired cryptocurrency into your BitMEX account. In order to deposit cryptocurrency, you will need to find your address. Click Balances from the top menu bar and select Deposit. Then type in the name of your coin under Type (e.g., Bitcoin). From there you will see a screen where it says Amount. In order to withdraw your coins back into an external wallet when done trading, be sure not to withdraw more than what is shown as available below Available Balance. If this is too confusing or too complicated just yet, don’t worry; this will all make more sense once we start going through step-by-step trades.
Placing an Order on BitMEX
If you’re new to trading, using BitMEX might feel confusing. However, there are a few key things you should know before beginning. First trade, you need to buy Bitcoin with US dollars and then go long or short on the instrument of your choice by placing a leveraged trade against BTCUSD (Bitcoin versus US dollar). In other words, buying the USD/BTC cross allows you to take both long and short positions on Bitcoin.
Understanding Leverage on BitMEX
For the first trade on BitMEX, leverage is a great tool for making quick profits. Leverage allows an investor to use less money in order to control more funds on the market. But it does not come without risk! The key to leveraging is understanding how your position size and margin affects your trading profit/loss as well as position limits. To illustrate, let’s say I have $1000 USD available for trading and I would like to purchase 1 Bitcoin worth of contracts using 100x leverage with my account’s current margin of $200 USD.
Introducing Liquidation on BitMEX
One of the most frequent inquiries we receive is how do I make my first trade? Although we recommend reading our Getting Started Guide, here are some things you need to know: – All funds deposited with BitMEX are Bitcoin and will remain in Bitcoin. At this time, only BTC is tradable on BitMEX. – Bitcoin will be used as your initial funding currency (unless your preferred choice is not available). If you wish to change this setting or deposit a different cryptocurrency, see our Tutorials section. – The risk management system called Margin Call may prevent traders from liquidating the position at the desired level at any given time because it has been determined that it would expose their remaining balance below the margin limit.
Disclosing Risk on BitMEX
The most important factor for a first trade is that you understand and accept the risk. There’s always a chance that something will go wrong. In this case, we’ll cover some of the risks involved with BitMEX. First, leverage is risky if you don’t know what it means, or how it affects your trade. The idea behind leverage on BitMEX is just like the concept in real-life with money – the more you borrow, the higher your potential return. However, take into account that when you lose on leveraged positions, your losses are magnified.
Calculating Profits and Losses on BitMEX
Since every trade on BitMEX is either a profit or a loss, you will want to start off with this. To calculate your profits and losses: open up the interface and select the tab labeled Trade History. On the left-hand side of the screen, navigate to the date of your first trade (which should be marked by a green triangle icon in your BitMEX activity feed) and click on it. Navigate over towards the right side of the screen until you see all trades with that time stamp.