How to manage your risks with the 'Risk Capital' ?

How it works ?

You’ll have to set up your % of risk per trade (up to 10%) and the stop-loss will always be equal to your parameters. We do not recommend a maximum risk of 10% per trade but rather between 1% to 3%.

What does that means exactly ?

Managing the risk this way means : No matter the size of the stop, if you used 1% risk maximum and the Stop-loss is reached, you’ll lose 1% of your capital. Let's take a long trade BTC as an example, a stop-loss of 10$ or 100$ will still be equal to 1%.

Position sizing ?

The smaller the Stop-loss will be and the bigger your position will be ! That’s why we don’t recommend using a high % of risk.

Why this change ?

We believe that the only way to manage the risk on Bitmex is by placing large enough Stop-loss. However, some of our members use the maximum capital available, some others used the cost and a few use the Risk maximum. This is way too much parameters and that’s why Risk will be the only way to determine the position as from now. This will allow us to propose a good risk-reward ratio for all our members and therefore increase the money management.