BitMEX Introduces New PnL Realisation Feature

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BitMEX Introduces New PnL Realisation Feature
BitMEX has recently enabled its new profit and loss (PnL) realisation feature, which automatically releases PnL for open positions, with the same margin currency. We delve deeper in this article and wonder how bitmex could be leading capital efficient trading again.

How does the new PnL Realisation feature work?

The new PnL realisation feature allows cross-margining users who have positions with the same margin currency and opposing PnL to offset their PnL across multiple contracts automatically every 10 minutes. If a specific position incurs unrealised losses, its position margin is topped up from the available margin when required. In contrast, if a winning position contributes realised profit to the user’s wallet and the losing position takes it away, the new feature sees liquidation and bankruptcy prices move towards the winning positions and, in some cases, through the initial entry price of the trade. 

What are the benefits of BitMEX’s new PnL realisation feature?

BitMEX’s new PnL realisation feature leads to more capital-efficient trading and reduces the overall liquidation risk. Cross-margining users can now free up capital from their winning positions and deploy it when trading multiple contracts. The feature also automatically offsets PnL across multiple contracts every 10 minutes, and in the event that a particular position incurs unrealised losses, its position margin is topped up from the available margin when required.
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