BitMEX and short trades possibilitiesJuly 10, 2018
The main method of earning on the stock exchange is buying a cheap asset and further selling for a higher price. But in the case of a falling market, this method does not work, but you can still make money. There are such terms as long trade and short, long implies the buy with the possibility to sell more expensive, basic and classical method of earnings. Despite the fact that crypto-currency assets have enormous potential and are in constant growth priority, nobody has canceled the correction anyway. Sometimes correction can be long (as now, for example), which excludes the possibility of highly profitable, relatively safe long trades; also, this young market can be pressured by some “organizations” or be manipulated by large structures. In situations like this, the right decision will be to admit that a downtrend appears on the market and start short trades. Short – sell for a fall, it works the following way: you understand that the value of the asset will be lower soon, borrow a certain amount of the selected asset and sell it at the current price, waiting for further fall. As soon as the price reaches its minimum, you buy back the amount that should be returned and return, thus leaving yourself a difference in money. Thus, we get a trading strategy that works well in a falling market, but also bear a portion of the risk. The strategy of making only long trades is still good, but not the most correct approach to the market. This takes the trader’s interest away from the market when it is falling, although it is possible and necessary to earn money in a falling market. In addition, trading only “long” leads to regular losses in a falling market, when a person who is accustomed to trading with profits, tries to go against the market. You can use all the opportunities that the market provides, depending on the situation, both on the growing and on the falling trend. But do not forget about the risks, short trades are more complex and dangerous than long ones, in case of a strong market reversal, there is a risk of losing money due to the obligation to repay the debt, with this you need to be cautious in the first place.
(!) Always use money management, invest only a small part of your deposit in a certain short transaction; always place stop-orders; if you missed the opportunity, then do not “catch up with the departing train” (both in long and short), do not buy or sell in panic, always follow a cold and clever calculation rather than an emotional impulse; move the stop-loss as the price changes, close the trades partially on each target reached; Also use the possibility of deferred and limit orders, that would not make trades at the current price (when you can see better conditions for entering or leaving); When marginal trading, use the leverage that you are ready to lose; admit, that from time to time the trades will not be successful, it is an integral part of life on the stock exchange; Do not “forget” about the orders, even with the use of pending orders, watch the market and keep your hand on the “pulse of trade.”
BitMEX allows you to trade for raising or lowering of prices with contracts, rather than the customary for most alts. An important advantage of the platform is the opportunity to trade with the leverage up to x100. This exchange gives an opportunity to open a position with a margin, that is, a loan for our deposit, trading up to 100 times bigger amount that is on the account. Using the maximum margin, you can get a good profit, but you can lose all the money (for a mandatory debt repayment), if the price goes at least 1% in the opposite direction. It is not recommended to get involved in the leverage, as described above, such trades are very dangerous and can be used very rarely on a small part of the deposit, with a small leverage with a great confidence in the direction of the market.