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Author Topic: How To: BitFinEx Trading  (Read 921 times)
NJCowboy
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December 29, 2014, 05:23:14 PM
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With the recent steady decline of market prices, I would very much like to take a Short Position on BitFinEx and sell Bitcoins on Margin to be replaced again at a future date.  The BitFinEx interface does not seem straight forward to me, and BitFinEx directs users to this forum for assistance or help.

I am confused by the BitFinEx interface and would like to find a How To site that shows all the functionality of the BitFinEx site. What happens when one Buys Margin, what happens when one Sells Margin, what it means to Receive a Swap versus to offer a Swap, and exactly what is required for each.  What does the system require as a minimum balance in the various wallets in order to perform each type of action?

I previously put 50 mBTC in my Trade wallet, and was not able to transfer them into an Exchange wallet, so I withdrew them altogether.  Later, I deposited 24 mBTC in a Deposit wallet and offered them as liquidity for margin trades, but I don't really know if I did this correctly and see no change to my account to indicate that people are using my available liquid assets.  Now, I want to deposit additional money back into wallets but don't want them to get stuck.  Ultimately, I would like to put BTC into a wallet as collateral for a Short Sell position (is this the Exchange wallet?), but I am not even certain that this is how the system works, and I see no way to tie BitFinEx to a bank account for collateral, so I depositing BTC seems to be the cheapest and easiest method of getting started.

Help!

The confusion above might make clear the situation I find myself in, and that is this: I want to participate, but I don't know how. Can any one link me to a helpful resource?

Thank you and Kind regards,

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odolvlobo
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December 29, 2014, 07:06:34 PM
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I think Bitfinex could do a much better job explaining their interface. Here is a summary that I hope answers your questions:

The three wallets each have a specific function. Assets not involved in any positions can be moved between the wallets.

You can buy and sell on margin in the trading wallet. You need to maintain a minimum balance in the trading wallet as collateral. Balances in the deposit and exchange wallets are ignored. While you maintain a position in this wallet you may not be able to withdraw some or all of this balance without reducing your position.

When you trade on margin, you borrow from someone by "receiving" a swap. This is generally done automatically for you, but you can manage the swaps yourself. When you close your position, the swap is closed by buying and returning the asset and you keep whatever is left over. You should monitor your swap position by going to the "Total Return Swaps" tab.

If you want to to "offer" swaps and earn interest, you do that from the deposit wallet. In this case you are swapping your assets (BTC, LTC, or dollars) for interest payments. You cannot withdraw the assets locked up in a swap until the person that received the swap closes it. You should monitor your swap position by going to the "Total Return Swaps" tab.

If you want to buy or sell normally, you do that from the exchange wallet and not the trading wallet.

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December 31, 2014, 04:29:57 AM
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Thanks for the detailed explanation, certainly helped answer some stuff I have been trying to figure out

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