In order to open a position on the BitMarket.pl exchange, follow these steps:
Specify the initial amount of a position
First, specify the value of a position in PLN. This is the amount you are borrowing from us to buy bitcoins (if you are going long) or the value of bitcoins you are borrowing from us in order to sell (if you are going short).
At this point, you should specify the level of leverage you will use to open a position. You can choose a leverage ranging from 1:1.5 to 1:5. The higher the leverage, the smaller the amount you will have to put up as collateral for the position and the higher your profit will be relative to the invested sum, if the price moves as you expect. However, a higher leverage also means a higher risk of losses, if the price behaves differently than you expect.
Specify the opening price of a position
You should specify the price at which your position will be opened. You have two options:
- At a market price. Bitcoins will be sold or bought at a price which reflects orders available on the exchange. When you choose this option, the price displayed will reflect the current situation on the exchange, which will give you the idea of a price at which your order will be executed.
- At another price. In this case, a bitcoin buy or sell order will be placed on the exchange with the specified price. A position will be opened as customers sell or buy bitcoins at the requested price.
Please note that by selecting the first option, you are guaranteed to have your position opened immediately and in full. If you choose the second option, your position will be opened depending on whether there are counterparties interested in entering into the proposed transaction. It may happen that there may be no traders interested in buying or selling bitcoins at this price, which means that your position will not be opened. It is also possible that customers will buy or sell only a portion of the proposed amount in bitcoins and your position will be opened only partially. Such a position may be cancelled as described in detail in this article.
Specify Stop Loss and Take Profit values
These values make it possible to automatically close a position when the price reaches a specified level. If you set a Take Profit value, your position will be automatically closed when the price reaches a certain level to lock in profit you expect from your investment. Thanks to this mechanism, it is not necessary to monitor the situation on the market or check the current price.
Similarly, a Stop Loss is the price level at which your position will be automatically closed at a specified loss threshold. Setting such a trigger makes it possible to reduce losses when the price moves in an unfavourable direction.
By default, the system will suggest values which correspond to 50% of profit and 50% of loss on an investment as determined in accordance with the selected leverage level. However, you may change these values or choose not to use this functionality at all.
NB! Although Stop Loss and Take Profit orders perform a similar role, they work differently. Before using these functions, please read a detailed description in this article.