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Title: Bitmex: Why can't unleveraged (<1x) shorts liquidate Post by: jackg on July 06, 2020, 02:29:12 PM I've been fiddling around with the trading controls at bitmex waiting for a strong trend to form and some sort of decisiveness...
Anyway I set up a short on low leverage and moved it down to 1x, at which my liquidation price became $100M (I'm guessing this is a placeholder when the number won't be reached and a little btc easter egg given the 100m target Satoshi had), anyway does this mean a short on bitmex at 1x or less won't actually liquidate much like a 1x long? Is there a good way to conceptualise this as I'm not sure I can find anything on other sites (same is listed for 0.04x too so I assume it's the same for all <=1x leverages). Title: Re: Bitmex: Why can't unleveraged (<1x) shorts liquidate Post by: andreibi on July 06, 2020, 05:01:27 PM Yeah, it won't liquidate but if you left it open for months, the fees will kill ya in the end anyway. At 1x? Might as well buy USDT. Anyway, I assume it's because it takes time to withdraw from Bitmex.
Title: Re: Bitmex: Why can't unleveraged (<1x) shorts liquidate Post by: jackg on July 06, 2020, 07:21:35 PM Yeah, it won't liquidate but if you left it open for months, the fees will kill ya in the end anyway. At 1x? Might as well buy USDT. Anyway, I assume it's because it takes time to withdraw from Bitmex. 1x just seemed a weird choice, sometimes it's nice to start off at a low leverage and then up the position as it moves in that direction if you're doing something a bit longer term or a larger move. I guess I forgot a 1x short of btc was a 1x long of a usd (probably better off using the bitmex index than tether though - or actual. Usd/eur fiat)... Title: Re: Bitmex: Why can't unleveraged (<1x) shorts liquidate Post by: exstasie on July 07, 2020, 07:06:10 AM I've been fiddling around with the trading controls at bitmex waiting for a strong trend to form and some sort of decisiveness... Anyway I set up a short on low leverage and moved it down to 1x, at which my liquidation price became $100M (I'm guessing this is a placeholder when the number won't be reached and a little btc easter egg given the 100m target Satoshi had), anyway does this mean a short on bitmex at 1x or less won't actually liquidate much like a 1x long? Is there a good way to conceptualise this as I'm not sure I can find anything on other sites (same is listed for 0.04x too so I assume it's the same for all <=1x leverages). I think there might be extreme edge cases related to liquidity where 1x positions can be liquidated but for practical purposes, they can't be. A 1x short is basically like holding synthetic USD. We also know from history that Bitmex will just shut down trading in an extreme liquidity vacuum, like the March crash. Yeah, it won't liquidate but if you left it open for months, the fees will kill ya in the end anyway. Depends on the trend. Longs have been consistently paying shorts for the past couple months. https://coinalyze.net/bitcoin/usd/bitmex/funding-rate-chart/btcusd_perp_fr/ You could also take a 1x position on futures and pay no swap fees. The premium or discount can move against you though. That's the trade off. |