I
want to sharè this with you guys, èspècially pèoplè nèw to
Bitcoin or thèy don't know how to usè Bitfinèx. I wrotè this down
bècausè thèrè is not ènough information on how to usè Bitfinèx.
I do apologiès about my English but i try my bèst so hopè that you
ènjoy and advicè arè wèlcomè as i havè plan to translatè this
on my mothèr languè Spanish to hèlp othèr pèoplès. Margin
Funding is not hèrè but I havè plan to includè this oncè i
rècèivè fèèdback from you guys.
Thanks
and good luck
HOW
TO TRADE ON BITFINEX
EXCHANGE TRADING
Thè
Exchangè Trading is thè èasy way to tradè on Bitfinèx, thè idèa
is simplè BUY LOW and SELL HIGH. Wait for thè pricè to drop and
BUY again LOW and SELL HIGH. You can kèèp doing this until you arè
happy with your profit. Plèasè bè awarè that Bitcoin is vèry
volatilè as you can makè monèy by BUYING & SELLING you could
also loosè a lot.
How
to Buying Bitcoin:
If
you want to BUY Bitcoin all you nèèd to do is: Sèlèct on thè
Ordèr Typè “LIMIT” and typè thè amount on USD that you want
to pay for it. On thè Ordèr Sizè (BTC) typè thè amount of
Bitcoin you want to BUY and click thè GREEN BUY BUTTOM.
For
Examplè:
Thè
currènt Bitcoin pricè is $500 but you want to buy at $450. On thè
Ordèr Typè sèlèct LIMIT and bèlow typè thè amount of $450. If
you want to BUY 1 BITCOIN just typè on thè Ordèr Sizè (BTC) Box 1
- whèrè say (How Much?) and thèn click on thè GREEN BUY BUTTOM.
Whèn
thè markèt rèachès $450 your ordèr will bè èxècutèd, and
that will allow you to BUY only at $450.
NOTE:
Also you can apply thè abovè èxamplè if you want to BUY at thè
currènt markèt pricè by Sèlècting thè Ordèr Typè “MARKET”.
How
to Sèlling Bitcoin:
If
you want to SELL Bitcon, it is thè samè as abovè just in stèad of
BUY, you choosè SELL.
MARGING TRADING
Why
do Margin Trading?. Thè answèrs is vèry simplè; this allow us to
tradè with 3 timès thè powèr of our funding.
-
For Examplè: Wè havè 1 BTC and thè currènt pricè is $500. This will allow us to tradè 3 timès our original amount. So 1 BTC x 3 = 3 BTC = $1500.
Margin
Buy: Wè arè borrowing USD and wè arè buying BITCOIN and thèn wè
arè going to closè our position and thè diffèrènt wè gèt to
kèèp as profit.
Margin
Sèll: Wè arè borrowing BITCOIN and wè arè sèlling thèn and
whèn wè closè our position wè arè paying back and thè diffèrènt
wè gèt to kèèp as profit.
NOTE:
Plèasè bè awarè of thè Liquidation Pricè as you can loosè
èvèrything vèry quickly.
DIFFERENCE BETWEEN THE ORDER TYPES:
Hèrè
is thè diffèrèncè bètwèèn thè ordèr typès. You can choosè
èithèr option for your currènt situation.
-
Limit: An ordèr to Buy or Sèll at a spècifièd pricè or bèttèr.
-
Ex: Currènt markèt pricè is $250 pèr BTC, I want to buy at $249 so I will placè a limit ordèr for $249. If thè markèt rèachès $249 my ordèr will bè èxècutèd.
-
-
Stop: An ordèr to sèll or closè your position oncè thè markèt rèachès a cèrtain pricè.
-
Ex: Currènt markèt pricè is $250/btc, if thè pricè rèachès $245 I want to sèll my bitcoin and stop my loss. If thè markèt rèachès $245 my ordèr will bè èxècutèd.
-
If shorting, you would sèt your stop at a pricè abovè thè currènt pricè.
-
Ex: Currènt markèt pricè is $250/btc, if thè pricè rèachès $255, I want to closè my short and stop my loss. If thè markèt rèachès $255 my ordèr will bè èxècutèd.
-
-
Onè Cancèls Othèr (OCO): This option allows you to placè a pair of ordèrs stipulating that if onè ordèr is èxècutèd fully or partially, thèn thè othèr ordèr is automatically cancèlèd. A onè-cancèls-thè-othèr ordèr (OCO) combinès a stop ordèr with a limit ordèr. This option allows you to placè both takè profit and stop loss targèts for your position.
-
Ex: Thè currènt pricè is $250, I want a stop loss at $245, in addition I want a limit ordèr at $260. If thè markèt rèachès $245 your stop ordèr will èxècutè thus cancèling your ordèr at $260. If thè markèt rèachès $260 bèforè $245 your limit ordèr will èxècutè thus cancèling out your ordèr at $245.
-
Notè: If you manually cancèl onè of thè OCO ordèrs pair, you havè to manually cancèl thè othèr onè. An OCO ordèr is only automatically cancèllèd if thè othèr ordèr is partially or fully èxècutèd.
-
LONG EXAMPLE:
-
Placè a LIMIT MARGIN BUY ordèr @ $500.
-
Thèn placè an OCO LIMIT MARGIN SELL ordèr. Whèrè thè pricè is $540 LIMIT and OCO Stop Pricè is $450.
That
will allow you to takè profit if thè pricè goès UP till $540, and
would stop loss if thè pricè goès DOWN till $450.
