You start by putting the number of bitcoins you wish to short and at what value (yellow circle). Quantity the volume you wish to trade with. Green square will show you the fee structure. Costs vary from -0.05% (reimbursements) to 0.25%, depending on market conditions. Take these into account when calculating your planned profits and the price level you wish to close the contract.
Lastly, you simply click the “Sell / Short” button and voila! Your order is live.
Step 3a (Optional): Use Leverage. If you wish to earn more from Bitcoin shorting, you can use leverage rates, indicated with a red square. Please note that BitMEX allows 100x rate as maximum amount for leverage. The maximum level is quite powerful and as such, sets liquidation price quite close to your starting value.
It means that should BTC price go up instead of down in value and surpass the liquidation threshold, your order would close and wipe out your balance. Starting with a 10x or smaller rate would be the best for beginners.
Step 4: Watch until BTC Price reaches the desired value. This step is perhaps the most agonizing one, as you sit and wait until price reaches the level you have set. We recommend putting a stop function that would close the order automatically.
You can put stop-order either to limit losses or to close the order once BTC value reached desired level. It would close the order for you, so you can be free from constantly looking at charts.
Step 5: Final step – Close the Order and Analyze. Once the ROE is at the acceptable level, it is time to close the order and earn profits. You do so by clicking the “Close Order” button that would be located in the space indicated by a yellow square in snapshot below.
