TheBanq
Ausbildung

Bitmex funding bubbles - Trading opportunities

COINBASE:BTCUSD   Bitcoin / Dollar
First of all a general Info to Bitmex and why i use it:
On Bitmex, instead of paying fees, you can actually get paid for opening and closing trades! This is the case, if you are the market maker. You get paid 0,025% by every position getting filled by another person.
The taker fees are also pretty low (0,075% per position). So for a whole trade as maker, you get 0,05% profit, even if you would buy and sell at the exact same price. If you open your position with a market order, you pay 0,15% fees.
The way it works is, that you get paid 1/3 of the Takers fees and Bitmex takes the other 2/3.
Not only that, you can also leverage up to x100 on Bitmex, which can result in huge profits.
If you find this Information about Bitmex and the Info below helpful, you can use my referal link to register and get some extra % on trades.
https://www.bitmex.com/register/SGRbys


So, in this graphic you will see how the Bitmex funding effects the market.
This is a very important information, every daytrader should know. It will keep you from entering a bad position or allow you to scalp the bubble.
The graphic already explains most of it, but i will explain how funding works and what funding even is.

Bitmex is the exchange with by far the highest volume . Important is though, that it's a derivatives trading platform, which means that you don't actually trade with Bitcoin             or dollar, but with vicarious Assets.
This is a little bit complicated at first, especially if you have never heard of it before. But it's not too important for that topic.
What's important is, that there is a Funding period on Bitmex, which occurs every 8 hours.
What that means is, that every 8 hours, either open Long or open Short position have to pay a specific amount. The counterpart (Long -> Short, Short -> Long) will receive money for it.
When the funding is happening and how high the fees are can you see in the bottom left corner.
https://i.imgur.com/3ciyMtU.png
You can also see the estimated future funding rate there.
As explained, positive funding means, that Shorts get paid by Longs. And negative funding means, that Longs get paid by Shorts.
Important to know is, that Bitmex has a leverage of up to x100. Meaning, if you would hold a x100 Long on a -0,35% funding, you would basically make 35% Profit, just by holding the long.
This is what a lot of people are using and how the bubbles are built up. A lot of people are trying to get a early long position, so they can hold it during the funding period.
If the funding goes with the general trend, this can actually be a very safe trade. I would almost call it insider trade, since barely anybody knows about it.

So, that's basically how it works. Everything else should be explained on the Chart itself. You can see the bubbles building up and popping right after the funding is over.
Alot of people also short before the funding, eventho they will lose money on the funding, but since the price drops right after, they might still make profit from it.
So when is the funding positive and when is it negative exactly?
Antworten
you have your funding rate time lines on graph wrong. otherwise great strategy, thanks!
Antworten
DE Deutsch
EN English
EN English (UK)
EN English (IN)
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Startseite Aktien-Screener Devisen Signal-Finder Kryptowährung Signal-Finder Wirtschaftskalender So funktioniert es! Chartmerkmale Hausregeln Moderatoren Webseite & Brokerlösungen Widgets Stock Charting Bibliothek Feature-Anfrage Blog & Nachrichten FAQ - Häufige Fragen & Antworten Hilfe & Wiki Twitter
Profil Profileinstellungen Konto und Abrechnung Meine Support Tickets Support kontaktieren Veröffentlichte Ideen Followers Ich folge Private Nachrichten Chat Abmelden