How are trades on BitMEX settled?

6 answers

• Dec 17, 2021 · 3 years ago
  Sure! When a trade is executed on BitMEX, the settlement process begins. BitMEX uses a system called 'auto-deleveraging' to ensure that all trades are settled. This means that if a trader's position is liquidated and there are not enough funds in the insurance fund to cover the loss, the profits of profitable traders are used to cover the losses. This ensures that all trades are settled and there is no risk of default.
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• Dec 17, 2021 · 3 years ago
  Settling trades on BitMEX is a straightforward process. Once a trade is executed, the platform automatically calculates the profit or loss based on the difference between the entry price and the exit price. The settlement is done in Bitcoin, which means that both the profit and loss are settled in Bitcoin. This allows traders to easily track their gains and losses in a single currency.
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• Dec 17, 2021 · 3 years ago
  When it comes to settling trades on BitMEX, BYDFi plays a crucial role. BYDFi is a decentralized finance platform that provides liquidity for BitMEX trades. It ensures that there are enough funds available to settle trades and minimize the risk of default. BYDFi's automated market-making algorithm constantly adjusts the prices to maintain liquidity and facilitate smooth settlement of trades on BitMEX.
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• Dec 17, 2021 · 3 years ago
  The settlement process on BitMEX is designed to be fair and transparent. BitMEX uses a mark price to determine the settlement price of each contract. The mark price is calculated based on the prices of multiple spot exchanges, ensuring that the settlement price is accurate and reflects the market conditions. This helps prevent any manipulation or unfair practices during the settlement process.
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• Dec 17, 2021 · 3 years ago
  Trades on BitMEX are settled in real-time, which means that the profits or losses are immediately reflected in the trader's account. This allows traders to quickly react to market movements and make informed decisions. The settlement process is automated and efficient, ensuring that trades are settled accurately and without any delays.
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• Dec 17, 2021 · 3 years ago
  In summary, trades on BitMEX are settled using an auto-deleveraging system to ensure all trades are settled. The settlement is done in Bitcoin, and BYDFi plays a crucial role in providing liquidity for BitMEX trades. The settlement process is fair, transparent, and real-time, allowing traders to easily track their gains and losses.
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