thegoatiest (OP)
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Merit: 12
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February 25, 2019, 11:48:02 AM |
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Hello,
I've got some coin on Bitmex. I'm having trouble getting it to retain it's USD value.
I have read that for your accounts balance to remain stable in USD - you need to have an order for: '(account value) short x1'
That's what I have currently. But when I look at the position, the: Unrealised PNL (ROE%) Is always the exact same as the Bitcoin price deviates.
So for example.
I have a short position of 100$ of XBT, bought @ 4000 with (leverage 1x)
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The price of XBT now goes down 0.2% from 4000 to 3992
My PNL (ROE%) also has gone up 0.2%
I thought having a 1x short would prevent any change to my equity in USD?
Please can someone clear this up for me, It's got me very confused.
Thanks. G
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butka
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February 25, 2019, 12:54:31 PM |
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Well, your equity in USD is the same, but the XBT price relative to USD changes all the time. You buy and sell contracts in USD, but the basic currency is XBT, not USD. So, your PNL (ROE%), which is calculated in XBT, changes all the time.
The only way to retain value is when the XBT price remains the same. If it goes up or down, you either earn or lose money (calculated in XBT).
The actual leverage doesn't prevent losing or winning. It only affects the margin. Even the fees are not affected by the actual leverage level. Huge leverage, small margin, and vice versa.
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CryptoReggae
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Activity: 187
Merit: 45
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February 25, 2019, 09:27:48 PM |
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Hello,
I've got some coin on Bitmex. I'm having trouble getting it to retain it's USD value.
I have read that for your accounts balance to remain stable in USD - you need to have an order for: '(account value) short x1'
That's what I have currently. But when I look at the position, the: Unrealised PNL (ROE%) Is always the exact same as the Bitcoin price deviates.
So for example.
I have a short position of 100$ of XBT, bought @ 4000 with (leverage 1x)
--
The price of XBT now goes down 0.2% from 4000 to 3992
My PNL (ROE%) also has gone up 0.2%
I thought having a 1x short would prevent any change to my equity in USD?
Please can someone clear this up for me, It's got me very confused.
Thanks. G
Bitmex has a Bitcoin base currency. If you want to preserve the capital, it would be advisable to use platforms that allow the use of the FIAT base. |
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MakeMoneyBtc
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February 25, 2019, 10:14:11 PM |
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That's probably one of the biggest Bitmex disadvantages, that you cannot keep your balance in fiat. You should consider moving to another exchange since you could lose a lot of money by keeping your funds into a coin. It's the same thing on all exchanges, if the price of the coin you are holding is moving up or down your balance in USD will also go up or down. There is nothing you can do to change that.
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wayaneka
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February 26, 2019, 04:45:41 AM |
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We can not do that, because in Bitmex only possible to make deposit and withdraw by Bitcoin, so if you make any profit you should transfer that Bitcoin to another exchange and sell it in to stable coin or fiat. Others solution is use exchange that provide margin trading and spot trading in 1 platform so will be easy to change Bitcoin to stable coin, like Poloniex, Gate.io, Okex etc.
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thegoatiest (OP)
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February 26, 2019, 11:08:19 PM
Last edit: February 27, 2019, 12:06:09 AM by thegoatiest |
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Thanks for the replies.
I still am not sure if shorting my full XBT balance will keep my USD value the same?
So say I deposited 1000$ of bitcoin into bitmex.
Provided I shorted it the full value (1000$ worth of XBT, say 0.25XBT~) Will I still have 1000$ months later?... even though the price of BTC may have gone up or down dramatically?
Currently it looks to me like as soon as a short my '1000$' by 1000$. Then the ROE on my equity starts fluctuating.
It seems stable when I don't short, or go long.
But I've been told having a balance on Bitmex means you're already going Long, and to counter-act that you need to short it for 100% of your USD/account/equity/value. to remain neutral/stable.?
Which is true? I'm having a major headache over this. I love the selling engine, but hate the concept of no fiat hedging, or tether e.t.c.
Edit:
Ahhh, I think I finally get it. So by shorting your trading capital by 100% - It's the same as selling your coin before a crash and then buying (more coin) back in at a lower price. ---- That's why you have an ROE despite being 'out' of the market. Your dollar value holds but you will end up with more or less XBT depending on if the price of BTC doubled or halved E.T.C ?
Edit 2: If shorting my coin by 100% is "hedging" it's USD value.. Why do I still have a liquidation price? on my hedged position...
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butka
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February 27, 2019, 08:20:35 AM |
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I still am not sure if shorting my full XBT balance will keep my USD value the same?
Yes it will unless you hit the liquidation price. At that moment, you lose everything. Your dollar value holds but you will end up with more or less XBT depending on if the price of BTC doubled or halved E.T.C ?
Exactly. Why do I still have a liquidation price? on my hedged position...
You cannot hold your position indefinitely, that is, you can but it should not hit the liquidation price. Depending on the leverage, the liquidation price can be very far away from your entry, or relatively close to it. At 1x leverage, it should be far away, but it is still present. Always mind this, you should never allow to be liquidated. |
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ginobitcoiner
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BBOD Trading Platform
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February 27, 2019, 11:29:30 AM |
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it will be better if the results of your trade on Bitmex are not stored on the exchanger. because the Bitmex exchanger has no coins that can make your balance stable.
Immediately move your assets to other exchangers that have FIAT currency pairs.
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mrdeposit
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February 27, 2019, 09:55:11 PM |
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Hello,
I've got some coin on Bitmex. I'm having trouble getting it to retain it's USD value.
I have read that for your accounts balance to remain stable in USD - you need to have an order for: '(account value) short x1'
That's what I have currently. But when I look at the position, the: Unrealised PNL (ROE%) Is always the exact same as the Bitcoin price deviates.
So for example.
I have a short position of 100$ of XBT, bought @ 4000 with (leverage 1x)
--
The price of XBT now goes down 0.2% from 4000 to 3992
My PNL (ROE%) also has gone up 0.2%
I thought having a 1x short would prevent any change to my equity in USD?
Please can someone clear this up for me, It's got me very confused.
Thanks. G
Best advice is using hedge function with opening buy and sell order with the same amount on the same pair in order to prevent losses by a price of XBT. After closing your trades withdraw your XBT to the cold wallet or send it to another exchange that offers stable coins with exchanging incoming BTC. |
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Razerglass
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https://bmy.guide
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February 27, 2019, 10:17:28 PM |
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it will be better if the results of your trade on Bitmex are not stored on the exchanger. because the Bitmex exchanger has no coins that can make your balance stable.
Immediately move your assets to other exchangers that have FIAT currency pairs.
Every time moving funds from one to another exchange will give a headache to the trader and this is not a feasible solution to the mentioned problem. Instead of fiat currency pairs, only using the hot wallet for trading purpose can holding rest on desktop wallet are better clarifications than paying high withdrawal and taker fee on exchanges. |
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Bitcotalk
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March 01, 2019, 05:27:41 PM |
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You are making use of bitcoin on the exchange and there is no possible way you can get a stable USD price when it's actually btc on the exchange, the only way to have a steady usd price is if you funded your account via the fiat option, or you exchange your bitcoin for stable coin that is pegged to the dollars just like have in the case of tether and some other coin in the market, you can check google to see some other coins which those features, though I recommend tether.
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exstasie
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March 01, 2019, 10:57:21 PM |
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You are making use of bitcoin on the exchange and there is no possible way you can get a stable USD price when it's actually btc on the exchange, the only way to have a steady usd price is if you funded your account via the fiat option, or you exchange your bitcoin for stable coin that is pegged to the dollars just like have in the case of tether and some other coin in the market, you can check google to see some other coins which those features, though I recommend tether.
The OP actually had the right idea. If you short XBTUSD at 1x leverage, it's effectively the same as selling for USD for as long as you keep the position open. The confusing thing is the unrealized PNL will reflect BTC gains and losses, not USD equity. That may not be obvious to someone who's trying to maintain USD equity. |
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sedahan13
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March 03, 2019, 03:49:11 AM |
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Bitmex should be add payment deposit in others coin, like stable coin of USDT, TUSD, PAX etc. So trader possible to keep the balance to that coins. Just like broker of Forex that allow many different methode of deposit, include Bitcoin, Netteler, Fasapay and more.
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traderethereum
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March 03, 2019, 01:54:13 PM |
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Maybe later we will see Bitmex will add another payment deposit as you want.
But before we can see that, I think it is very difficult to see the balance will be stable as we want since when we place an order buy or sell, the price will always change following the price at the market.
I think in Bitmex, we are trying to increase the bitcoin we have by leverage trading.
But if you want, I think you can try with OKcoin.com because I check on the site, it supports BTC pair USD.
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manggis97
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March 04, 2019, 01:25:19 AM |
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All trading futures platform only provide methode deposit of crypto like BTC, LTC, ETH but not stable coin. I dont know the reason, but there are others option, we can do margin trading in crypto pair by make deposit fiat or others stable ecurrency by trade on cfds trading platform, that is metatrader platform that also we can trading forex pair, stocks, and crypto as well.
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thegoatiest (OP)
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March 17, 2019, 10:07:04 PM |
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Maybe later we will see Bitmex will add another payment deposit as you want.
But before we can see that, I think it is very difficult to see the balance will be stable as we want since when we place an order buy or sell, the price will always change following the price at the market.
I think in Bitmex, we are trying to increase the bitcoin we have by leverage trading.
But if you want, I think you can try with OKcoin.com because I check on the site, it supports BTC pair USD.
Cheers, I think I'm going to pack my bags at bitmex and head back over to Binance. Bitfinex is the exchange of my dreams... leverage, OCO orders, tether. I'll have a look into OKcoin.com they look more professional than Binance to me.. and leverage is nice.
If you short XBTUSD at 1x leverage, it's effectively the same as selling for USD for as long as you keep the position open. The confusing thing is the unrealized PNL will reflect BTC gains and losses, not USD equity. That may not be obvious to someone who's trying to maintain USD equity.
Yeah this is what got me.  I shorted my account equity - then saw my position was minus 1-2% ROE and I was like: HEY!!!!! FU then I bought back in (at a terrible moment) to find out my USD was still exactly as it was more or less. |
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