Navigating BitMEX Calculator

Introduction to BitMEX Calculator

The BitMEX Calculator is easy to navigate, essential for user-specific trading fees. It also computes profit/loss for Bitcoin and Ethereum unceasing contracts for the BitMEX cryptocurrency derivatives exchange. Furthermore, the BitMEX fee calculator is fully free to use.

What is BitMEX?

BitMEX is a platform that lets the investors get their hands to the global financial markets using only Bitcoin. Finance professionals established BitMEX and it has over 40 years of combined experience. Furthermore, BitMEX offers systematic and comprehensive supporting tools and Application Programming Interface (API).

BitMEX Calculator Terminologies

Entry Price: It is the price at which the user enters the position.

Exit Price: It is the price at which the trader exits the position.

Trade Size: It is the Bitcoin margin on the trade.

Leverage: The trader’s borrowed funds or leverage on his position.

Fee Rate: The fee rate for the trade.

How to Use the Calculator

To better conceptualize it, here is an image of BitMEX Calculator:

BitMEX Calculator

Steps to take:

  • First, input your entry and exit price.
  • Second, enter your total trade size in Bitcoin.
  • Third, type in the total leverage for the trade.
  • Fourth, choose your fee rate.
  • Fifth, click ‘calculate’.
  • Lastly, the calculator will compute your fee and profit/loss in both a percentage and in Bitcoin.

In the lower part of the calculator, it would show the profit/loss in percentage and in Bitcoin. This is how it looks like:

BitMEX calculator 2

If it displays a negative (-) sign, it means a user will make money on the trade.

How is BitMEX profit Calculated?

BitMEX profit is computed using the formula:

($1/1,000 – $1/$1,500) * 500 Bitcoin where:

1,500- the last price of XBTUSD

500- the number of contracts a user sold

How is liquidation price calculated BitMEX?

  1. Cross Liquidation Price = 1/(/Entry Price + Minimum Margin Balance/Position Size)
  2. Minimum Margin Balance = Account Balance * [1-(Maintenance Margin + Taker fees + Funding Rate]

BitMEX Fees

BitMEX fees are more complex and more complicated than other exchanges. It is because BitMEX fees are computed not using the actual cost, but using the notional value of the trade.

Furthermore, BitMEX fees for the Bitcoin and Ethereum perpetual contracts are 0.025% for maker orders/provide liquidity and 0.075% for taker orders/take liquidity and 0.075% for taker orders/take liquidity.

For instance, suppose a user opens a (taker) trade which costs 0.1 Bitcoin on the Bitcoin perpetual contract with 100x leverage. That user is paying fees on the total notional value of that trade which would be 10 Bitcoin. That just means, every trade, that user will pay 0.0075 Bitcoin.

For better comprehension, it would be like this:

[(0.1 Bitcoin x 100) x 0.075] /100 = 0.0075 Bitcoin

Good Alternatives for BitMEX

  1. Bytbit
  2. Bitfinex
  3. FTX
  4. Phemex

Choosing the best crypto trading signal provider

There are numerous kinds of crypto signals that exist and available that a user can get from the provider. If a user is a beginner in trading, one of the best ways to start with crypto trading is by making use of the crypto trading signals. Those crypto trading signals enable a user to make an account and configure the suggestions on the settings to start trading within a matter of minutes. Moreover, to think it through, it is very simple yet possesses more power. On the other hand, these trading signals are particularly designed to let the users use the entire opportunities for trading a range of the digital assets available on the bitcoin exchange.

Explaining the Perpetual Contracts

Suppose, a trader wants a 1,000 XBTUSD contract with an average entry price of $1,000. If the XBTUSD mark price is $1,250, then the unrealized profit and loss (PNL) are based on the difference between the mark price and the average entry price.

The unrealized profit will be computed like this:

($1/$1,000 – $1/$1,250) * 1,000 = 0.20 Bitcoin

The realized PNL is dependent on the difference between the price and the average entry price. Moreover, the realized PNL is computed with regards to where a user can buy or sell his position. More usual than not, this is not the mark price.

It will be computed using the formula:

($1/$1,000 – $1/$1,250) * 500 = 0.17 Bitcoin 

where: 1,500 is the last price of XBTUSD and 500 is the number of contracts a user sold

BitMEX Anti-Liquidation Tool And Leverage Calculator is a BitMEX anti-liquidation tool and a leverage calculator. This is a free tool that lets the user save up to 70% of his capital in losing trades. Furthermore, the tool enables up to 700x leverage through tight stop placement.

It is set up so a user can put his own risk numbers. The site computes the user’s position size from risk amount, distance to stop, and entry price. A checklist is available which will guide the user through the structuring of a good trade. Moreover, it helps the user avoid all possibility of Liquidation and ‘blowing up’ the account.

Here is looks like:

Bitmex calculator 3

Profit or Loss Calculator

BitMEX calculator 4

In the picture above, a trader buys 5894 XBTUSD swap contracts. Entry at the current price of 5,894 & Exit set at 6189 which is a 5% increase. The leverage is 10. We are buying a position worth 1 Bitcoin.

The Margin is Not What We Expect; Why?

The leverage is 10. On the other hand, the margin is commonly the reciprocal of Leverage, multiplied by the user’s position. However, in this situation, Margin is 1/10 * Bitcoin position = 0.10 Bitcoin. 

Margin = (1/Leverage) * position size + (2 * taker fee)

Moreover, the fee is 0.075%.

The reason why the Profit/Loss Calculation looks wrong

The exit price is 6189, and it is a 5% increase. In this example, we have 10x leverage. In short, we should be having a 50% profit.

It is strange why our ROE on the calculator shows only 47.62%. There is 2.38% missing. Where did it go? Who stole it? Is it hidden fees?

Here is the explanation:

The BitMEX calculator is not showing any results in US dollars. Below is a further explanation. It shows that we have made a 50% profit, measured in USD. However, it is only 47.62% if measured in Bitcoin, which is more expensive.