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Author Topic: So, what i am doing wrong with Bitmex? Going to get liqudated soon around 70k?  (Read 171 times)
cryptotrade78u (OP)
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November 26, 2018, 04:06:39 PM
Last edit: November 26, 2018, 04:22:40 PM by cryptotrade78u
 #1

So, Here's couple of screenshot from my Bitmex account.





So i went long on 68875 Contracts and deposited 17.17 BTC so far. I Understand my entry point is 6019.38. Here's my question, if i went long on 68,875 contracts and at current rate of 3663 its 18.80 BTC. Since i already deposited 17.17 BTC, am i not just barely using any leverage? If yes, why does it shows my liquidation point at 2480.50. In other words, since i went long on only 18.80 BTC should i add 1.63 BTC and it will take liqudation mark down to $0?

some of you might think, this is a perfect case of why people shouldn't invest in what they don't understand and i agree i don't get leverage 100% but i also have ability to simply send more btc to my wallet and not get liquidated.

Thanks for the answers in advance
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Tytanowy Janusz
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November 27, 2018, 09:12:54 AM
Last edit: November 27, 2018, 09:43:45 AM by Tytanowy Janusz
 #2

You used btc worth 100k dollars (not dolars) to buy btc contract. Thats why.

This is not quite that but it will help you understand:

You put 17 btc to buy btc contracts at btc price 6000$. Bitmex took your btc as deposit and put its $ to buy you btc contract (you own them 17*6000=100k but they dont have to worry because they have your 17 btc worth 100k and your contracts worth 100k).  Now, when price is at 3000$ you still own then 100k $ (because they spend that much for your contracts) but your deposit is worth 17*3000$ =50k now (and your contracts another 50k) - together worth 100k - last time to close for bitmex to cover your depth. Thats why there is liq price. This is example of buying 17 btc in contrancs for 17 btc. You bought 18. Thats why adding 1 btc as deposit wont delete liq price.

Othervise its impossible to buy btc for btc.
cryptotrade78u (OP)
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November 28, 2018, 05:20:08 AM
 #3

You used btc worth 100k dollars (not dolars) to buy btc contract. Thats why.

This is not quite that but it will help you understand:

You put 17 btc to buy btc contracts at btc price 6000$. Bitmex took your btc as deposit and put its $ to buy you btc contract (you own them 17*6000=100k but they dont have to worry because they have your 17 btc worth 100k and your contracts worth 100k).  Now, when price is at 3000$ you still own then 100k $ (because they spend that much for your contracts) but your deposit is worth 17*3000$ =50k now (and your contracts another 50k) - together worth 100k - last time to close for bitmex to cover your depth. Thats why there is liq price. This is example of buying 17 btc in contrancs for 17 btc. You bought 18. Thats why adding 1 btc as deposit wont delete liq price.

Othervise its impossible to buy btc for btc.


Where do you see that i have 100k dollars worth of contract? I Understand average price entry is $6019.38 but i am wondering how you got to 100k number?
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