FMex is a bitcoin derivative exchange allowing you to trade in real-time. Started in October 2019, the exchange has been gaining popularity in the Chinese market.
Only recently, FMex has launched its English version — and I would like to show you why it matters. In fact, there is also a comparison between BitMEX and FMex worth a glance.
In short: FMex makes traders the owners of the platform by offering decision-making power (governance) and financial incentives (dividends).
Which is why, in this article, we will look into trading your first perpetual contract. As you read this, please know that we will go back to the basics and explain everything in simple terms.
Step 1: Let’s Understand Bitcoin Perpetual Contract
A futures contract is an agreement. A perpetual contract is an agreement with no expiry date.Think of futures as milk - with a shelf life. Perpetuals as wine - with no expiry date.
In this case, you are buying or selling a bitcoin perpetual contract.
Why do this? Well, thanks to leverage, you can buy more or sell more. You might have heard of people going “long” or “short” on bitcoin. This is essentially that — you are buying more of bitcoins (long) or selling more of bitcoins (short).
If you are right — you earn bitcoins in return. Such perpetual contracts are picking up in the industry as they offer a way to maximise your reward (and risk).
Step 2: Register With FMex
FMex is a derivate exchange allowing you to trade bitcoin contracts. And if you haven’t signed up yet, you can do so using this link: FMex.com.
Here is the link to the BTC perpetual contract:https://fmex.com/trade/BTCUSD_P
As you can see below, you are allowed to trade the contract with 1x to 100x leverage. In this example, I slide to the 100x leverage.
It simply means, I am trading 100 times more than what I have, which increases the risk and the reward. It is not recommend to trade at 100x as you can get liquidated easily.
Step 3: Go Long Or Short
Once you have set the leverage, it is time to place an order. You can place a limit or market order, and then select to either go long or short.
Here's one important fact: because you have selected leverage, you are going to spend based on this leverage. For example: If you set 100x leverage, then you need only 1 bitcoin to trade worth 100 bitcoins.
Step 4: Confirm Your Order
Once you go long or short, FMex will pop up a box to show you the order - with the leverage, value, available balance, and the current mark price.
You can hit the "Confirm" button to place the order.
Step 5: Congrats! Your Order Is Placed!
The order will be shown order the "Positions" where you can see the quantity of your contract (1 contract = 1 USD), with entry price, liquidation price, unrealized profit and loss, along with the option to close your position.
So this is it - you saw perpetual contract, why it matters, and how FMex allows you to place your order quickly. Plus, because FMex is part of the FCoin ecosystem, you also earn to earn FMex tokens (called FMEX) for placing orders.
You can exit your position any time you see a profit. Feel free to check out FMex.com and let me know if you have any questions.
