Overview of BitMEX

Short description BitMEX

Founded in 2022, the BitMEX exchange is a centralized platform. According to CoinGecko, the exchange has a medium (7) trust score. As of August 2025, 17 cryptocurrencies are traded on the exchange, with XBT/USDT being the most active trading pair. The highest trading volume in the last 30 days was reached on 27 May, amounting to 611 BTC.

Detailed Review of Exchange BitMEX

BitMEX allows you to trade with large deposits while having just $100 in your account. And yes, it works. I STRONGLY recommend that you first familiarize yourself with this exchange guide and other educational materials before moving on to test trading on the testnet, which will be discussed below.

A distinctive feature of the platform is its functionality for earning not only from the rise but also from the fall of cryptocurrencies. I will introduce you to the principles and general workings of the exchange in this article. Everything is written for people who need explanations; a glossary is at the end, and you will see the table of contents on the right.

The main point to start with is your security. By registering on the "official" BitMEX website, you ensure the future safety of your balance. Recently, phishing has become popular in the crypto industry, during which either malware replaces exchange links in users' browsers or a deliberately false link is distributed at an early stage.

When you navigate to a "fake" page, you won't see any differences from the real BitMEX site.

The main criterion for verification will be the https connection.

BitMEX Exchange in Simple Terms

You need to understand that BitMEX does not belong to the type of ordinary exchanges where you deposit your bitcoins and other cryptocurrencies and then trade them. Here, the principle of operation is such that you supposedly bet on the decrease or increase in the value of an asset, in our case, bitcoin. And yes, here you can trade with $100 for a total amount of $1,000. We will discuss how this happens and why it is not advisable below.

An interesting fact about the platform: BitMEX confidently holds the leading position in terms of daily trading volume. On September 17, 2017, $1 billion was recorded.

All trading is conducted in bitcoin equivalent; all transactions, deposits, and withdrawals are denominated in Bitcoin.

Overview of General Information about BitMEX

So, BitMEX is a P2P platform for trading currency derivatives (contracts for the future value of an asset) and other financial terms that may not be very clear.

As the creators of the exchange in 2014, co-founders Arthur Hayes, Ben Delo, and Samuel Reed already had relevant knowledge in finance, trading, and web development.

Previously, we wrote a review on the cryptocurrency OST.

Based in Hong Kong, the platform also operates in Europe, South Korea, and Japan. Among all countries, China dominates in terms of the number of clients.

The exchange's founder is the holding company HDR (Hayes, Delo, Reed) Global Trading. Despite being constantly registered in the Seychelles, it has operational centers in Hong Kong and the USA.

BitMEX does not operate in the following countries:

• United States of America
• Quebec (Canada)
• Cuba
• Crimea and Sevastopol
• Iran, Syria
• North Korea
• Sudan

What are BitMEX Fees and How to Reduce Them

Few people know that there is an opportunity to reduce your fee by a significant 10% when registering through this link: www.bitmex.com/register/Hpo2IY

❗️ Even if you already have an account, it is not prohibited to register new ones on BitMEX through the new link and transfer your balance to them. The savings from trades over time can be substantial.

Another headache for many traders using the exchange is the fee on BitMEX. Looking at the summary table presented on the website, there are no questions until it becomes clear that this amount is multiplied depending on the leverage used.

[table id=4 /]

Also, based on the table above, it is clear that different cryptocurrencies incur different fees per contract. Ideally, there should also be different leverage, but more on that later.

Maker - Fee from closing limit orders
Taker - Fee from market orders

Test Net BitMEX: Learning to Trade on the BitMEX Simulator

The Test Net allows you to quickly learn how to trade on BitMEX without risking your assets. You can open a demo account with BitMEX for free, and you will receive test bitcoins from faucet developers. In other words, the Test Net is a simulator of BitMEX with fictitious bitcoins.

The testnet and the main exchange site are separate; they have different databases, which means you will need to register again.

Registration in demo mode is available at the link: https://testnet.bitmex.com/register

There are no noticeable differences between the main and test networks, meaning that working with them will be identical. The only difference is that the testnet balance is replenished through faucets:

• https://testnet.coinfaucet.eu/en/
• https://testnet.manu.backend.hamburg/faucet
• http://tpfaucet.appspot.com/

After entering the wallet, which can be obtained in the balance settings, click "Get Bitcoins!" and you will receive fictitious bitcoins for trading.

BitMEX Orders: Types and Functions

Orders are the trades you make on the BitMEX exchange. Each has its distinctive features, and it is these features that determine how you will earn on the exchange. The choice of order occurs in the window located on the left main panel. Let's break down the specifics of each type presented:

• Limit Order - A trade initiated to sell/buy a required number of contracts upon reaching a certain limit price (Fee is lower)
• Market Order - A trade executed at the current asset price immediately. (Fee is higher)
• Stop Limit Order - Setting a limit order upon reaching a stop price. This means we set a trigger (condition) under which an event will occur. Useful in trading when breaking important resistance levels. Can be used as an exit from a position, i.e., as a popular stop-loss.
• Stop Market Order - Similar to a limit order. Here, upon reaching the stop price, the order transforms into a market order and activates immediately. In this case, we are confident in closing the deal unlike with a limit stop.
• Trailing Stop - A very powerful order in skilled hands. We set a bounce price value. After entering the position, the order immediately activates at market price, and then an event triggers when the price changes by the value we specified above (from the entry point). Example: Entered at $5000 for 1 bitcoin. Set the value to -200. We tell the exchange: I'm entering the deal, throw me out when the price retraces by -200 points. (Reached 7000, retraced to 6800, that's when the order activated.) Since we indicated "-", the sell trailing stop event triggered. If we had set +200, then during the decline looking for a bottom, a purchase would occur on a bounce from any level by 200 points (sell trailing stop). As you guessed, this type is convenient for entering at planned lows or exiting during a prolonged rally. The exchange will do everything for you.
• Market Order with Profit Lock - Similar to a market stop, but here the triggers are placed in the opposite direction. Placing a trigger for this order below the current price means entering long. Above means short.
• Limit Order with Profit Lock - We place a limit order and attach a trigger whose activation initiates the limit order. Trigger above the price - short. Below - long.

Functions of BitMEX Orders

The functions of orders are available right below the selection window, but depending on the selected type, the checkboxes will differ. For example, market orders have none at all. Let's figure out what each means:

• Post-Only - Includes a delay when placing a market order, allowing you to save on fees and even receive a rebate.
• Hidden - The order does not appear in the order book, making it anonymous (shadow), just like on the ren.exchange.
• Reduce Only - Not visible in the screenshot above; this parameter appears when selecting a limit order.
• Close Trigger - The checkbox on BitMEX orders indicates that it is necessary to close the trigger on time so that the exchange does not allow both of your scenarios to work. In simple terms: You set a take profit for an increase of +200 points and, just in case, a stop-loss at -200. Closing the order implies that after receiving profit, your order will close and will not allow you to enter short when retracing to your stop-loss.

BitMEX Contracts: What is XBT/USD

Perpetual Swap

Within this topic, we will not go into detail about what XBT is; it is enough to say that this short name is assigned due to the uncertainty of the country of origin. For example, like gold (XAG) or silver (XAU).

On BitMEX, bitcoin with the ticker XBT paired with the dollar USD acts as a contract. A swap is also a perpetual contract (not time-limited). Here, you must accept that this is a general equivalent of the familiar pair BTC/USD or BTC/ETH on a traditional exchange. Contracts with other currencies have familiar names such as Cardano (ADA), Bitcoin Cash (BCH), EOS, Ethereum (ETH), Litecoin (LTC), Ripple (XRP).

Futures

Futures on BitMEX are time-limited contracts with expiration dates. Futures for bitcoin and other cryptocurrencies are located in the same tab on BitMEX but on the second level (Buttons with dates: January 4, March 29).

Up/Down (UP/DOWN Contracts)

The newest derivative offered by the broker. It was added due to user requests complaining about liquidation on futures contracts. Essentially, these are two different types of contracts; we combined them for the sake of brevity, but to understand their specifics, we need to highlight the features:

• Up (UP) Contract - Simply put, we bet that at the time of expiration, the value of the underlying instrument will be above the strike price. When purchasing, a premium is paid, which in turn gives the right to receive further profits from the aforementioned difference. Only long positions are available. The cost of 1 contract is 0.1 XBT.
• Down (DOWN) Contract - Similarly in the opposite direction; however, here a barrier (Knock Out) appears, the achievement of which by the underlying price leads to early expiration.

The differences between the contracts are reflected in the table below:

[table id=5 /]

Funding: Who Pays Whom and Why

As mentioned at the beginning, BitMEX is a peer-to-peer exchange (P2P), which supports both longs and shorts. Get used to the fact that every 8 hours there is a redistribution where the strong side pays the weak side. If longs dominate, they pay shorts and vice versa.

In the image above, you can see the expected funding rate of 0.01% that will be paid by the strong side represented by longs.

To participate in the redistribution, an important condition is to have an open position in contracts. If you simply have a balance topped up on the exchange, you won’t have to pay anyone, and no one will pay you.

Margin Trading on BitMEX

It’s time to talk about the key aspect, the grail that makes this broker special. It should be noted right away that beginners should be cautious; if you just opened the internet yesterday and learned about trading this morning, I recommend going back to the basics of regular trading before returning to margin trading and this section.

On BitMEX, there are two types of margin trading:

1. Cross Margin - By default, it is turned on as a checkbox in the leverage control panel. Cross means that all (!) your balance will be automatically distributed among your positions. In this mode, the size of leverage will be determined based on the size of the position.
2. Isolated Trading - You automatically activate this mode when you set the leverage size. Here you strictly limit trades by allocating a specific amount of money for each. You risk only that amount, not your entire account balance.

In simpler terms - imagine there are people with large capital (in our case, cryptocurrencies), who are given the opportunity to earn by lending their assets for interest. On BitMEX, margin trading implies that ordinary traders can earn precisely from the funds of larger players, thereby increasing the maximum amount of the trade they could afford using the tool described below.

How Leverage Works

This is where leverage (L) from BitMEX comes into play; with it, you trade just like before, but part of the funds for your transaction is borrowed.

Here's another example: With a balance of $100, you open an order and choose leverage (2x), which means that half of the transaction amount is borrowed. You start trading with $50 of your own and $50 borrowed. This means you have $50 freed up to trade as well. So with $100, you open a trade for $200.

This means you have the ability to borrow at 2x, 3x, 5x... more than your actual deposit.

Important point: Beginners mistakenly believe that leverage allows them to earn more. This is not true. Ultimately, leverage is needed to execute a larger trade, which leads to increased profits.

To demonstrate this clearly, it is sufficient to keep the trade volume (the number of contracts purchased) unchanged while changing the leverage value.

In the screenshot below, with a 10x leverage, we have a profit of 2.21% amounting to 0.002 XBT with a margin of 0.0137.

Increasing leverage to 50x, we rejoice at the increased profit percentage of 10.67, but we are disappointed when we see that our unrealized PNL, also known as ROE, did not increase.

This happens because increasing leverage alters the margin from which the percentage of our profit is calculated.

Risks: What High Leverage Entails

It turns out that with increased leverage, we have increased profits, but along with that come increased risks of losses. This is related to the moment of liquidation of your order and, along with it, the amount of your deposit.

Liquidation on BitMEX: What It Is and How to Avoid It

We have reached the question of how the exchange protects against losing an amount greater than the deposit when using leverage. Liquidation on BitMEX is precisely what saves you from significant losses; it is responsible for completely nullifying your trade with irreversible liquidation of your funds.

The liquidation price (LP) is always visible in your open position; when trading perpetual contracts, LP is your only limiter. How far LP will be from your entry point depends on the chosen leverage. The higher the leverage, the closer the liquidation.

Liquidation of a trade always occurs at market price and relies not on the main rate but on the BXBT index price (more on that later).

Liquidation of a trade always occurs at market price and relies not on the main rate but on the BXBT index price (more on that later).

In the image above, you can see the dependence of the liquidation price on the size of leverage. Opening a trade at (2x) leverage gives us a limit in the range of 4494; can you feel the difference? This means that for us to be liquidated, the price must drop by 2000 points, and the likelihood of such an event is incredibly low. HOWEVER, if we increase leverage to 25x, the distance to the liquidation price decreases.

The screenshot above shows a short trade, so the liquidation is above; it will occur in an unfavorable outcome - a price increase. Now we see that with 25x leverage, risks have increased significantly; now the price only needs to move by ~300 points to completely wipe out the order and your deposit.

Ways to Avoid Liquidation

Method One: Add Margin

Based on the concept of liquidation, the most obvious way to postpone it is to add margin to an already open position.

Method Two: Change Leverage

We have already become acquainted with leverage, and we know that lowering the leverage value will push the liquidation price further away by several beneficial points.

There are cases when leverage at a certain value becomes unaffordable; here, the icon located to the right of the leverage scale comes to the rescue. It allows you to change to the maximum available leverage through manual input of fractional numbers.

BitMEX Index: What Does BXBT Mean?

The index is the average cost of a contract taken from the rates of two other exchanges: Bitstamp and GDAX in a 50%-50% ratio.

It exists to minimize the likelihood of manipulation of the rate. Thus, it somewhat smooths out extremes. If, for example, there is an attempt to puncture (large sale) on Bitstamp to liquidate market orders by dropping the rate, the averaged value of the BXBT index simply will not reach the area of liquidation.

The concept of long positions does not belong solely to BitMEX. The term is old and derives from prolonged and slow price increases. Thus, the phrase "to go long" means to buy an asset and earn from its growth. And "longs" are people who engage in this activity. These individuals are also referred to as bulls, pushing the price upwards.

The two numbers located on the button on either side of the "@" symbol represent: The number of contracts and the price at which to execute the trade.

The price under the button indicates how much of your funds will go towards executing the trade. That is the amount you could lose upon liquidation, no more.

In simple terms: Bought 1 contract XBT at 6050 today, sold it for 6200 tomorrow, pocketing the difference.

A short on BitMEX - the concept of Short also goes back to years of trading development, implying that unlike growth, declines always happened quickly and sharply, hence - a short trade.

It is commonly believed that one can only earn from cryptocurrencies by buying bitcoin and similar assets; however, BitMEX provides an opportunity to enter a short position, meaning selling contracts and profiting from it.

Principle of operation: It is implied that when making a trade, we instantly borrow (credit) an asset from the exchange and immediately sell it at market price. Then, upon falling prices, we find the right point and buy back the asset, repaying the loan and recording the difference as profit. Thus, we follow the classic scheme of "Sell high - Buy low."

How and Where to Start Trading on BitMEX

Based on what we have read above, we can summarize the beginning of our trading journey into a few simple steps. This checklist is more suitable for beginners than experienced traders.

Step 1. Register on BitMEX

Registration is available at the link - https://www.bitmex.com/register/  this is a very standard and simple form; no additional confirmations are required, and you can start literally one minute after opening the link. You only need an email address to which a confirmation email will be sent.

Step 2. Wallet Balance

To access your wallet settings on BitMEX, simply click on the area where your contract count is displayed (top right). After that, you will be taken to a page with detailed information about your balance.

Let’s quickly go through the points:

• Wallet Balance - The assets currently in your wallet
• Unrealized PNL - The sum of your live unclosed position at the moment
• Margin Balance - The actual state of your wallet considering unrealized PNL
• Margin for Positions - The total amount in positions
• Margin for Orders - Unavailable balance, amount for orders awaiting execution
• Available Funds - The amount of cryptocurrency available for withdrawal

Step 3. Fund Your Balance on the Exchange

Click on the green "Deposit" button to enter the balance funding window. At this stage, a bitcoin wallet has already been reserved for you, so to fund your account, simply top it up.

The minimum deposit amount is 0.0001 BTC.

Everything here is standard; you receive a wallet address to which you send bitcoin to fund your account on BitMEX.

Step 4. Open a Position

Opening an order when trading boils down to simple actions: selecting a trading instrument (contract) as described above, choosing an order type, and setting leverage.

Don’t forget that with a market order, we always pay an increased fee. Therefore, we always open and close through limit orders.

Step 5. Withdraw from Balance

To withdraw cryptocurrency (bitcoin) from BitMEX, simply click the blue button next to the green one labeled "Withdraw Funds."

In this window, we see three fields that we fill out:

• Destination Address - crypto wallet where we will send our funds. MUST BE A BITCOIN WALLET.
• Amount XBT - The number of bitcoins being sent.
• Bitcoin Network Fee (XBT) - The fee for processing your transaction. The higher the amount, the faster the transfer will occur.

On BitMEX, withdrawal requests are processed once a day at
13:00 (UTC) (Around 16:00 Moscow time). To receive a transfer today, you must create a request before this time.

BitMEX Calculator: Profit and Position Calculation

BitMEX also has its own calculator that allows you to calculate profit/loss, target price, and the previously mentioned liquidation price.

To open it, use the icon in the order window on the main page.

BitMEX Scam: What Reviews Tell Us

Since the platform is relatively young, the team eliminates even the slightest possibility of negative reviews about BitMEX. You can find plenty of questions online regarding minor errors that arise, but there are no negative reviews unrelated to limited trading experience.

Moreover, we opened a group on VKontakte where anyone can share their feedback or describe problems they encounter while trading - https://vk.com/bitmex

Glossary: Terms and Definitions

This section is dedicated to the pressing question of "what is," and I think this format will help clarify some unclear terms on the fly. Some terms already described in the article may appear here.E