Leverage trading is trading with a certain amount of money that you don't actually posses. In Bitmex, you have different leverage options such as, 2x, 5x, 10, 25x, 50x, 100x. Your leverage determines how many times your initial investment will be multiplied by as well as your profit. For example, if you have 1 BTC and you believe that Bitcoin price will go up, you LONG bitcoin with 10x leverage, that gives you a total trading volume of 10 BTC. Now, you are trading with 10 Bitcoin and let's say, bitcoin goes up 10%, now you have made 1 Bitcoin (10% of 10 BTC) in profit and you can close your position if you wish. In Bitmex, you can close your position whenever you want either you are losing or winning. You have the option to say okay that has gone up enough, I will take my profit and go out with no penalty, or if the trade doesn't go in your way you can always say that's enough I am out with no penalty. Here is a couple of examples of Short and Buy.
What's the catch? - Liquidation
Liquidation price is the price that your position would be closed by Bitmex and you would lose your funds. As you take on higher leverages, your risks increases. 10x leverage means that if the price goes to the opposite direction by 10% you get liquidated. If you go by with 100x leverage then your position with 1% opposite direction price action. However, 100x leverage gives you the option to trade with 100 BTC while you actually invest 1 BTC. It has it's up and downs.
Personal Advice & My Account Log
I think Bitmex is a great opportunity to make money in a bear or bull market. As a trader, it is harder to make profits on a bear market as you can't buy and hold coins since they constantly go down. However, Bitmex gives the option to make money as long as there is volatility in the market. The best way to take advantage of Bitmex is you go with 10x leverage since you know Bitcoin will not move 10% either direction. You play the long trend. For example, if you felt like 5,800 was the bottom and you go long with 10x, You would be pretty safe and make lots of profits. So, the bottom line is don't get greedy, don't use high leverage, play the long term and you will make a lot money. Registration Link: https://www.bitmex.com/register/x17ySc My Account History