Q. How do I register on the exchange?
A. Visit |registration link| and use your email-id for making your account and setting a password. Activate your account by clicking on the activation link sent to your registered e-mail.
Q. Forgot password/Account Reset
A. To reset your password, click on the 'Forgot Password' button and enter your email-id. Reset password using the link sent to your email-id.
Q. How to set up 2FA/remove 2FA
A. To set up 2FA, after logging into your account go to the Security tab, click on set 2FA and follow the instructions. Disable 2FA in the same tab after log-in.
To reset 2FA in case you lose your 2FA device and are logged out of your account, drop a mail to email@example.com to initiate the process.
Q. Making Withdrawals and Deposits
A. After logging into your Bitfex trading account, go to the Deposits tab under Wallet. From there, follow the instructions given to deposit funds. Similarly, go to the Withdrawals and initiate a withdrawal by following the instructions give to withdraw funds.
Q. Contacting Support/Raising Ticket
A. Under the Support tab, go to Raise Ticket. Fill out the form given and click on submit.
Q. Is KYC needed?
A. No KYC is required to trade on the Bitfex Exchange.
Q. What is the minimum deposit/withdrawal?
A. There are no minimum or maximum limits on deposits or withdrawals. Please note, only the amount given as account balance is eligible for withdrawals.
Q. Withdrawal processing time
A. Withdrawals occur once every 24 hours. Once you have requested for withdrawal, if your request is approved, a transaction for sending your funds to your wallet address will be submitted to the Bitcoin network and you will receive your funds after the transaction is confirmed on the blockchain. Withdrawal requests received till 07:00 UTC will be payed out (if approved) in the same cycle; those received afterwards will be payed out in the next withdrawal cycle.
Q. Funds not received
A. Bitcoin withdrawals can take longer in case the blockchain network is congested. You can check the status of your transfer using the transaction ID and a Bitcoin block explorer. In case you withdraw funds to a wrong address, Bitfex bears no responsibility for loss of funds.
Q. Can I buy Bitcoin on Bitfex?
A. No, Bitfex is a derivatives exchange where you can buy/sell contracts based on cryptocurrencies like Bitcoin. As of now, you cannot buy Bitcoin or other cryptocurrencies on Bitfex.
Q. Are my funds secure?
A. Yes, on Bitfex exchange 99% funds are stored in multi-sig deep cold storage. Only 1% of funds are in hot wallet at any given time.
Q. Countries whose citizens cannot participate
A. Below is a complete list of all the countries who are restricted from trading on the Bitfex exchange:
- the United States of America
- Quebec province (Canada)
- the Republic of Seychelles
- Crimea and Sevastopol
- North Korea
- Any jurisdiction that restricts the trading/transactions of Bitcoin and/or cryptocurrencies and/or Bitcoin or cryptocurrency Derivatives
Q. Securing your account, machine and internet connection
A. You can follow these simple security tips to keep your trading account with Bitfex secure:
- Choose a strong password and use password manager to keep track of your passwords.
- Enable 2FA to safeguard against a password compromise
- Always verify that you are visiting bitfex.com before logging into your account
- Never give out your email/password/2FA key to anyone claiming to be a Bitfex representative over a phone call or e-mail
- Be vigilant while installing software on your machine and do not install unnecessary and unverified 3rd party softwares
- Use an antivirus and keep it up to date
- Use a secure internet connection, preferably with VPN while connecting to bitfex.com
Q. Bug bounty and reporting security threats
A. To report bugs and/or security threats, please drop a mail to firstname.lastname@example.org
Q. What is margin?
A. Margin is the initial deposit required for taking a position in any contract.
Q. What is initial margin and maintenance margin?
A. Initial Margin is the minimum account balance required to initiate a position. is the minimum account balance required to keep a position open. Initial Margin and Maintenance margin will be calculated for every order and trades.
Q. Cross-Margin vs Isolated Margin
A. Isolated margin when you block the margin for a position and only this blocked amount is used to maintain the position. Remaining account balance is not used to cover the position if liquidation is triggered.
Bitfex uses cross-margin, that is, the entirety of a trader's account balance as margin to avoid any liquidations.
Q. What is liquidation?
A. Liquidation occurs when a trader's account balance is not enough to keep the trader's positions open. Liquidation happens when NAV becomes equal or less than the maintenance margin. In such a scenario, the Bitfex Liquidation Engine takes over the trader's account. All open orders are cancelled, and the trader's positions are closed by sending liquidation orders till NAV becomes greater than the maintenance margin.
Q. How can I prevent getting liquidated?
A. As soon as NAV<=IM, a margin call is issued to the trader via email. Liquidation can be avoided in the following ways:
- Set stop-loss when placing orders
- Cover position by adding funds to the account balance if a margin call is issued
- Close the position if a margin call is issued
- Cancel open orders to free up margin if a margin call is issued
Q. Risk profile and raising my leverage
A. Contact us at email@example.com to change your risk profile and increase your leverage.
Q. What are Derivatives?
A. A derivative is a financial contract between a buyer and seller whose value depends on an underlying asset, like Bitcoin. The name derivatives contract is used for these contracts, as their price is 'derived' from the price of the underlying asset.
Q. What is the advantage of derivatives?
A. Derivatives offer the advantages of protection against price volatility, the ability to hedge or speculate on the future prices of an asset (in this case cryptocurrencies) and better risk management.
Q. What derivative contracts are available on Bitfex?
A. Bitfex offers three derivatives contracts:
Q. What are Futures?
A. Futures contracts let traders go long or short on the future price of Bitcoin.
These types of contracts need to be settled upon expiry; either in cash or by delivery of the underlying asset.
Q. What are Perpetual Contracts?
A. Perpetual contracts are futures contracts without expiry, unlike traditional futures contracts, which expire after a predetermined time (monthly, quarterly, yearly, etc.).
Q. What are Exchange Quoted Spreads?
A. Spread trading involves simultaneously buying and selling futures contracts with different expiration dates. The name spread is given to the difference between the prices of the two futures contracts.
Only on Bitfex, this price difference or spread between individual futures contracts is available as a single contract, called Exchange Quoted Spread.
Q. Inverse futures and vanilla futures
A. For Futures contracts, the currency in which price of the underlying asset (in this case a cryptocurrency like Bitcoin) is denominated is called the quote currency. The base currency is the currency in which the PnL of a position in Futures is calculated.
Depending on whether the base and quote currencies are same or different, there can be two flavours of Futures contracts, inverse Futures and vanilla Futures.
For an inverse Futures Contract, the quote currency is different from the base currency.
If the quote currency is same as base currency, it is known as a vanilla Futures Contract.
Bitfex offers inverse Futures Contracts where base currency is BTC and quote currency is USD.
Q. How is spread trading beneficial?
A. Benefits of Spreads:
- Lower Volatility
- Lower risk
- Limited Losses
- Increased opportunity for profit making
- Larger positions possible
Q. Is options trading available on Bitfex?
A. As of now, options are not offered on Bitfex, but will soon become available.
Q.What is funding?
A. For perpetual contracts, a mechanism called funding is employed to keep the price tethered to the underlying spot price. Funding involves exchange of payments at fixed intervals between buyers and sellers based on a funding rate.
Q. What is Mark Price?
A. Mark Price is the price used in the calculation of Unrealised PnL and expiration price.
Q. What is bid/ask?
A. The bid is the price that buyers are willing to pay for a trading asset.
The ask is the price that sellers are willing to take for a trading asset.
Q. Profit and Loss Calculation
A. Profit and Loss is calculated on the basis of entry and exit/market prices.
For unrealised PnL: [1/Entry Price - 1/Market Price]*No. of Contracts = Profit/Loss in BTC
For realised PnL: [1/Entry Price - 1/Exit Price]*No. of Contracts = Profit/Loss in BTC
You buy 10000 contracts at Entry Price = $5000 If market price is $8000 then: Unrealised PnL = [1/5000-1/8000]*10000 = 0.75 BTC If you exit when market price is $10000, then: Realised PnL = [1/5000-1/10000]*10000 = 1 BTC