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In some exchanges, margin call will mean you get notified and must deposit more margin to avoid liquidation (like CryptoFacilities).

Fast execution, low fees, powerful features, and responsive trading: available only on BitMEX.On other exchanges you will at this point be liquidated out of your position.Why would you sell into fiat when you are concerned about a possible price drop.

OKCoin and BitVC do not offer a demo version, but you can start small with 1 contract and test how Open Long, Open Short, Close Long, Close Short and different order types work.If someone market buys that limit order, an open contract is created between you and the other trader.Due to many issues with our IRC channel we have now incorporated a second off-topic room to better suit the needs of the community and make.This is because when the price is falling, the USD value of the BTC is also falling, so the payout mathematically adjusts for this and increases as the price falls, compensating for the reduced USD value.

Cross Margin can be very beneficial for swing traders who need to ride out turbulent, choppy price action, but new traders should NOT risk their whole account.If price goes up on spot, a good futures exchange will have its contracts also going up in price, and then you can sell and get out.The exchange is not your counterparty, the contracts are created when new limit orders in the orderbook are filled.Last updated: April 2017 Welcome to the best bitcoin trading guide on the internet.However, what if price goes down really fast, and my counterparty only had a little margin backing his position.Tradechat Archive 2017 Jan 01 Page1. Xoblort kk do mods get a list irc-style.

However, it is important to note, that Bitcoin Futures often trade in high premium, or a discount, which reflects the market sentiment of what the future price will be.Maintenance Margin - this is the % of the position value you have to have in your account at the very minimum to avoid being Margin Called.This requires a premium on the futures exchange to be able to hedge that trade.Fixed margin will isolate your margin to the individual position you have made in an instrument.Since there are no offers available, he places a limit order in the orderbook for a bid at 400 of 1 contract, using his 0.2btc as collateral for the position.This does NOT mean that you receive instant money for selling the contract.

So if maintenance margin is 5%, then the 0.05 BTC of your initial margin will need to be kept for the position to be alive.Bitcoin News and Search. 1 News -24 7 News -24 7 Bitcoin -1 Search.BitMEX and CryptoFacilities have a more professional and properly set up exchange that has a naming convention that makes sense and matches their settlement, while using weekly rebalancing to allow for profit takeouts of customers.It can often be confusing to traders who are using multiple futures exchanges with different contract types -- inverse and qunato, dailies or quarterlies, 5x or 100x -- so people wonder: what should I trade.The contracts are simply like stocks with a market price, which represents the agreements between traders to take the opposing sides of where price of bitcoin will go, so no actual bitcoins are being exchanged.First you need to learn what futures are and the absolute basics.

Spot has lower leverage which means you have to risk more of your capital with exchanges.If it goes down, I profit and he loses, if it goes up, he profits and I lose.

Because traders are using 20x, or up to 100x margin, sometimes the market moves so fast in one direction that they get margin-called and the system that sells their position is unable to get filled.

The simple act of two traders with no open interest, one making a.So you can typically trade contracts and get in and out of them with decent spreads and reasonable fees.BFE has a policy that traders have to put 20% of margin down to enter a trade, so Bob and Ann deposit 0.2btc to their BFE accounts as they only want to trade 1 contract.Expiration - what Date and Time does the contract expire and settle on the Index price.With BitVC and OKCoin you can hold simultaneous long and short positions on the same contract.This means that the contract value comes into existence when two people agreeing to enter into it.The exchange then holds the 0.2 BTC margin of each party and the Profit and Loss (PNL) of the contract seesaws between counterparties based on market movements.It is a technical guide of how to trade bitcoin futures and understand what you are trading.

We have a complete table of contents below that you can use to navigate the rich content available to help you learn the ins and outs of trading bitcoin futures.Note that every futures contract has a LONG leg and a SHORT leg which balance each other out.

rbtc spreading misinformation in r/bitcoinmarkets | 1 Bitcoins

Since we are stuck with this unprofessional Chinese exchange being the dominant market player in futures, we have to focus on their use of the terminology, but BitMEX and CryptoFacilities have very impressive and professional setups that use well documented procedures.This is how you can go from a position of 0 to a negative exposure just by selling a contract.Bitcoin interest rates tend to be less than US Dollar interest rates, so when you want to replicate the future value of bitcoin in US dollars, you have to borrow USD at, say, 5%, and invest in Bitcoin at 1% return.

Margin-trading is what provides the real reward and potential in daytrading bitcoin.By Friday, however, this profit is available to be withdrawn and the positions are all rebalanced.This means by definition there are as many longs as shorts in the bitcoin futures markets.Well, he gets margin-called when it goes down enough, and the system takes his contract and forces it to be sold to a different counterparty that wants to take the LONG side of my contract.At the expiration of the contract you are trading, all positions get closed out and settled.Your profit or loss comes from the change in the price you pay.