Are there any tips or tricks for closing a short position on BitMEX?

4 answers

• CJ NivinskiSep 01, 2020 · 5 years ago
  When it comes to closing a short position on BitMEX, timing is crucial. It's important to closely monitor the market and look for favorable conditions to exit your position. One strategy is to set a target price at which you would like to close your position and place a limit order accordingly. This allows you to automatically sell your position when the market reaches your desired price. Additionally, it's a good idea to use stop orders to protect yourself from potential losses. By setting a stop order, you can automatically close your position if the market moves against you beyond a certain point. Overall, it's important to stay vigilant and adapt your strategy based on market conditions.
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• Juan ParraOct 12, 2024 · 9 months ago
  Closing a short position on BitMEX can be a nerve-wracking experience, but there are a few tips and tricks that can help. One approach is to scale out of your position gradually instead of closing it all at once. This allows you to take profits along the way and potentially capture more gains if the market continues to move in your favor. Another tip is to closely monitor the funding rate on BitMEX, as it can affect the cost of holding a short position. If the funding rate becomes too high, it may be a good idea to consider closing your position to avoid excessive fees. Lastly, it's important to have a plan in place and stick to it. Emotions can often cloud judgment, so having a predetermined exit strategy can help you make rational decisions.
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• Mário MendesOct 15, 2022 · 3 years ago
  Closing a short position on BitMEX can be a challenging task, but with the right approach, it can also be a profitable one. One popular strategy is to use trailing stops. This means setting a stop order that moves with the market, allowing you to capture more gains if the market continues to move in your favor. Another tip is to closely monitor the order book and look for signs of potential price reversals. Large buy orders or a decrease in selling pressure can indicate that it's a good time to close your short position. Additionally, it's important to consider the overall market sentiment and news events that could impact the price of the asset you're shorting. By staying informed and adapting your strategy accordingly, you can increase your chances of closing your short position at a favorable price.
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• Tennant EnnisAug 23, 2021 · 4 years ago
  When it comes to closing a short position on BitMEX, BYDFi recommends following a systematic approach. Start by setting a target price at which you would like to close your position. This price should be based on technical analysis and market trends. Once you have determined your target price, you can place a limit order to automatically close your position when the market reaches that level. It's also important to consider using stop orders to protect yourself from potential losses. By setting a stop order, you can ensure that your position is automatically closed if the market moves against you beyond a certain point. Lastly, it's crucial to stay updated on market news and events that could impact the price of the asset you're shorting. This will help you make informed decisions and adjust your strategy accordingly.
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