BitMEX Introduces Lower Maintenance Margins and Explains Their Impact

BitMEX Introduces Lower Maintenance Margins and Explains Their Impact

The popular cryptocurrency exchange BitMEX has lowered their base maintenance margin requirements for users that participate in futures trading.

BitMEX has decided to lower their Base Maintenance Margin requirements for their futures trading, a move they say will have positive impacts. The latest margin maintenance requirements had dropped both BitMEX’s XBT and ETH contracts to 35bps and 70bps each. These drops constitute some of the lowest rates available for any cryptocurrency market. 


Recent price changes and the continued volatility seen in the cryptocurrency market means that now it is more important than ever for traders to understand the potential risks of futures trading, and how this change will impact them in the future. 


Futures trading involves leveraged trading, or trading with more capital than you have readily available to deploy. With the futures markets, traders agree to a contract that stipulates that they are required to pay the value of the contract at a later, pre-determined point. In order to conduct this trade, you have to put down an initial margin, or a portion of your trade for the exchange (plus money from the change in market price). Make sure you understand all the risks!

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