How To Leverage Trade On Phemex?

This is a cryptocurrency exchange that has grown quickly into becoming one of the most trusted and known crypto exchanges in the market.

Phemex trading platform offers you an intuitive user interface and it is one of the reasons why beginners also like it. You can deal in a variety of trading pairs and trade both spots and with leverage on Phemex.

The exchange allows leverage trading up to 100x of your initial investment amount and accepts deposits from credit cards too. This exchange is also a perfect fit for experienced investors who are looking forward to exchanges with advanced features.

Here, we will talk about trading on Phemex with leverage, steps to follow, the fees you will have to pay, and more.

 

How to Leverage Trade on Phemex? 

STEP1:

It starts with registering an account and it doesn’t take long to register yourself with Phemex. All you have to do is to enter an email ID and set a password.

phemex create account

Once this is done, you will have to verify your account through a 6-digit code sent on your mentioned Email ID.

To experience increased security, you should enable the Two-Factor Authentication (2FA). 

Once done, you are ready to deposit funds in your account. (You can always use the Phemex invitation code to get a Signup bonus) However, make sure you get your identity verified to get rid of some limitations, such as the withdrawal limit. The step will not take more than 5 minutes.

phemex identity verification

STEP 2:
In order to trade on Phemex, you have to first transfer some funds to your Contracts Account. For this, you have to select your Contracts Account as shown below, decide the amount you want to transfer to the account, click on transfer, and you are ready to trade.

transfer funds phemex

STEP 3:

In the image shown below, you can see the default trading interface of Phemex. On the left side, you can see the order tabs, the contract details, the order book, and the recent trades. 

In the middle, you get a detailed chart by TradingView, and below on the dashboard, you can track your open positions.

The exchange lets you deal in various order types- Limit Order, Market order, and Conditional Order. 

phemex trading view

This is the dashboard where you can open a leveraged trade.

You click on “Market” on the left-hand side of the dashboard. 

In the “Quantity” column you decide the quantity with which you wish to open a position on Phemex. Here, suppose, you open a position with 100 contracts using 5X leverage.

5x leverage phemex

This is the dashboard where you can open a leveraged trade.

You click on “Market” on the left-hand side of the dashboard. 

In the “Quantity” column you decide the quantity with which you wish to open a position on Phemex. Here, suppose, you open a position with 100 contracts using 5X leverage.

phemex long position

STEP 4:
Once you confirm the specifications of the trade, your position will be open and active, and you can notice it on the bottom of your dashboard.

STEP 5:

Last but not least is closing your position.

phemex close position

Just like you could open the option easily on the exchange, it allows You can close the position easily too.

All you have to do is press the blue button on the right to the position you want to close.

Your proficiency level will not matter while trading on the exchange. Even if you are a beginner, using Phemex for leverage trades will be simple for you.

 

What’s The Maximum Leverage on Phemex?

Phemex allows you to trade using up to 100x leverage. You start by assigning a specific portion or part of your funds to start a leveraged trade. Then, you decide on the leverage as we have seen above.

Phemex adjusts the Liquidation Price depending on the level of leverage you have set. The more leverage you use, the lesser is the difference between the Entry Price & the Liquidation Price you get and vice versa.

Using leverage offers you a better scope to earn more profits at a lesser cost; however, you are also likely to liquidate your positions if the market moves in the wrong direction.

 

How To Change Leverage on Phemex?

Every contract order or position you open on Phemex can be set with either cross or isolated margin.

  • Cross Margin and Risk Limit:

You start with login into your account. On the bottom navigation bar, you will see a100x Icon, when you tap on it you see three horizontal lines on the screen at the top left-hand side corner.

You have to click on these lines to see all contracts. The next thing you do is choose either a Long or Short option, and choose margin as per your wish and strategies.

However, here, you get the cross margin option by default.

The next step will be to select the Risk Limit. 

Once you confirm the specifications, your leverage trade will be open.

  • Isolated Margin and Leverage:

You perform all the steps you do while opening a trade with cross margin and risk limit. Only after choosing from the Long or Short option when you go to the margin section at the top of the screen, you will choose “Isolated margin”.

Then you will enter the desired leverage multiplier, choose the desired risk limit, and confirm the order.

This is how you can set your leverage, margin, and risk limit. 

 

What Are The Trading Fees on Phemex?

One of the most vital factors to consider while trading on the Phemex crypto exchange is the fees.

Phemex is similar to other leading cryptocurrency trading platforms like FTX when it comes to the usual fee structure:

  • It charges a 0.75% Taker Fee
  • The marker fee is 0.025% 

However, while trading with leverage, it considers the funding rates. Funding fees on Phmex are charged as per the long and short position holders every 8 hours. However, no overnight fees are charged.

In addition, the fees vary based on the contract you use. 

Conclusion:

Phemex is a very well-known trading platform that offers a range of different pairs. This guide mainly focused on leverage trade on Phemex however, you can deal in numerous trading pairs here.

The fees charged by the exchange are transparent and fair. Hence, you stand a great chance to gain maximum out of every leverage trade you open.

Your proficiency in trading is not a concern when you use the Phemex trading platform. The on-platform navigation is simple, the user interface is friendly, and all the information is available to you on a single dashboard to make trading easier.

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Jack Bailey

I am John, a veteran trader turned into a trading coach. Especially in the realm of cryptocurrency derivatives which is now booming and expected to grow big.