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Title: Do bitmex make a load of profit when you're liquidated Post by: jackg on May 06, 2019, 11:19:04 AM I'm talking about a forced liquidation using a high leverage. I was using 100x leverage and it seemed to only be leveraged at 52x so I assumed that half of my capital might get returned at the bottom but it didn't... This means that bitmex are making a huge profit on this (and you should set a stop loss $1 above the forced liquidation price (I'm not sure if I'm completely wrong but this seems right to me).
Title: Re: Do bitmex make a load of profit when you're liquidated Post by: leowonderful on May 06, 2019, 11:31:04 AM Yep, most of the time especially with high leverage when you get liquidated you make a large subsidy payment to the liquidation fund. That’s why I typically set a stoploss just a few dollars above my liquidation if I’m using higher leverage just to save a few bucks if I’m not using a higher up stop.
This Medium guide explains it well. https://medium.com/@BambouClub/how-bitmex-stop-losses-can-save-you-70-of-your-capital-and-how-to-set-up-a-stop-limit-cd4a730adfab Title: Re: Do bitmex make a load of profit when you're liquidated Post by: buwaytress on May 07, 2019, 02:13:56 PM Not the first time I heard about this complaint at Bitmex. I suspect the terms aren't very clear if even experienced traders get caught out. Definitely conservative stop losses order of the day.
Margin trading on its own is already quite difficult to manage (seriously, jackg I would even consider using a round % just for easier calculation) but if there is a margin fund premium on top, shouldn't that be already deducted from your balance? I mean, regardless of fees shouldn't your live balance tell you at which point you get liquidated? Title: Re: Do bitmex make a load of profit when you're liquidated Post by: jackg on May 07, 2019, 02:44:27 PM I was using 100x leverage but the "pot" wasn't high enough for that risk. Which was disapointing because they'd have made a nice profit going the other way ;D. The 52x leverage was the extent of the size of the pot or the people I was betting against.
I was experimenting with a few strategies to double my money with a small amount (making an almost guarenteed 20% profit gets boring now and then haha)... The point being that, like leo said, it's best to set a stop loss higher than the forced liquidation as I'd have kept 48% of my pot by doing that (which wasn't much to start with so there's that at least). Since I'm on the topic of bitmex, does anyone know how to stop it from timing me out on the website login session. I don't have time to configure or build a bot atm? |