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BitMEX Introduces New Profit and Loss Realisation Feature
BitMEX, a leading cryptocurrency exchange platform, has introduced a new profit and loss (PnL) realisation feature for cross-margining users. Enabled on 11 April at 04:00 UTC, this feature allows users to automatically realize their PnL for open positions with the same margin currency every 10 minutes.
This new functionality provides cross-margining users with more capital-efficient trading and a reduction in liquidation risk. By automatically offsetting their PnL across multiple contracts, users can free up capital from their winning positions and deploy it when trading multiple contracts.
The new PnL realisation feature works by checking unrealized losses whenever the Mark Price changes. If a position incurs unrealized losses, its position margin will be topped up from the available margin when required. Profits are then transferred from Unrealised PnL to Realised PnL using the Mark Price. This feature applies to all users and all cross-margin derivatives positions, including perpetual swaps, futures contracts, and settlement currencies.
In the near future, BitMEX plans to incrementally increase the frequency of its PnL realisation feature. Any changes to the frequency will be communicated to users via social media and site announcements.
To help users understand the benefits of the new feature, BitMEX has provided fictional trading scenarios that demonstrate how the PnL realisation feature can help traders more easily prevent liquidations and make more capital-efficient trades.
It is important to note that the new feature will change the behavior of some fields in the position sections of the derivatives trading pages, including avgEntryPrice, marginCallPrice, liquidationPrice, bankruptPrice, and several others related to PnL, cost, and margin. The deleveragePercentile will also change due to smaller unrealised PnL and a lower chance of deleveraging.
With the introduction of this new PnL realisation feature, BitMEX aims to provide its users with a more efficient and risk-reducing trading experience.
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