Ulimate Deribit Guide 2019: – Deftsuo
Market orders will be executed at the market price; which is based on the most recent traded price.
Entering orders is the same as the process we discussed in the limit order examples. There is no post-only option (which ensures a “Maker” rebate fee structure), so this means any market orders will be qualified as a “Taker” fee since you are taking liquidity from the orderbook.
Stop-limits are the same as regular limit orders; except you need to add a Price “Trigger”, a Stop price, and a price that you are willing to buy or sell the asset at.
For our Trigger, we have 3 options:
1.) Last Price: Last traded price of the asset on the exchange.
2.) Mark price: Found in the center of the orderbook; “The mark price is the price at which the perpetual contract will be valued during trading hours. This can (temporarily) vary from the actual perpetual market prices to protect against manipulative trading.” (Per Deribit’s knowledge base section.)
3.) Index Price: Average price of the 4 index exchanges (shown in the center of the orderbook as “Index.”) This is the average of Bittrex, Coinbase Pro, Kraken, and Gemini, each with a 25% weight.
The trigger will activate based on one of the 3 options you select. For quick stop-limits or stop markets, using Last price is a quick way to get out. If you find that using the Mark price is more efficient for your strategy, then use Mark. The index option works well when you are waiting for a level break on an index exchange (such as Coinbase pro) before having your order activate.
Stop Price: Price point we want our stop to trigger and become active.
Price: Price we want to buy or sell our position at after our trigger is hit.
Let’s run through an example: Let’s say you enter a 1 Bitcoin LONG position at $10,000, and want to set a stop-limit stop-loss. Let’s say we want to use the Last Price trigger as we want to have our position closed quickly if it reaches our invalidation level. So, first, we select our Trigger as “Last Price”. Now, we have to determine what our “Stop Price” (or invalidation level) in this example is. Let’s say $9899 is our invalidation level. We would enter 9899 as the “Stop Price” as once price broke this number our trading setup would become invalidated and we would like to exit our position. Given this is a Stop-limit and not a stop market, we need to set a price to have our position close out at. In order to close out a LONG position, we must sell SHORT. Let’s say price wicked down to $9890 (which hits our Stop-Price trigger at $9899) and we expect a slight rebound to $9905. We could set our Price as $9905; and when price rebounds after hitting our trigger at $9899, our position would close at $9905. Stop-limits are often tricky and I haven’t found them all that useful as you would need to see a bounce back up after your trigger is hit for your order to close out. Read the note below for why I prefer stop markets.
Stop-Market:
Stop-markets have the same Trigger options as Stop-Limits. Stop-Markets will stop at a price you pick, and then trigger a market buy or sell.
For example: If you have a 1 BTC long from $10,000, and you want to exit the position if it breaks $9,899 on the last-traded price of the exchange; then you would select “Last Price” as the Trigger, Stop Price would be $9,899, and you would be selling, so you would then hit Sell, and confirm your order. Remember, to exit a Long position, you have to sell Short, and Vice versa.
NOTES:
1.) I have found that Last Price and Index Price are the most useful triggers in both stop-limits and stop-markets. I haven’t found Mark Price as a trigger to be all that helpful. Of course, do your own research and own due diligence as I am not a financial advisor. These are just my own opinions on the matter.
2.) I prefer stop-market over stop-limits; simply because stop-markets will get you out or get you in much quicker and usually much safer than stop-limits usually can. Majority of the time you are better off using stop-markets and paying the “Taker” fee from my experience. Of course, do your own research and own due diligence as I am not a financial advisor. These are just my own opinions on the matter.
Fees: Below is 2 screenshots of the fees from Deribit’s website:
Orderbook:
Orderbook is pretty self-explanatory. Shows visible open orders, what prices those orders are at, and the total amount of orders to a given price point. You can also change the grouping to No grouping, 1, 2, 5, or 10 grouping by clicking the drop-down menu on the Price button as shown by the above screenshot.
Trade History:
Shows recent trades, which side of the trade it was on (Long or Short), the Price point, and the date/time it was executed on.
Positions tab:
Positions tab shows you a lot of critical information. Here, you can see current open positions, open orders, stop losses, order history and trade history. Open orders/Stops/Order History and Trade history are fairly intuitive, so I won’t be covering them in further detail.
Positions:
When we have an open position, our positions box shows us:
1.) the trading instrument.
2.) the size of our position in USD terms.
3.) the size of our position in Bitcoin terms.
4.) our average entry.
5.) the mark price of the exchange.
6.) our estimated liquidation price.
7.) our current PNL (Profit and Losses.)
8.) our Session UPL (Session unrealized profit and loss.)
9.) our session RPL (Session realized profit and loss.)
10.) our Initial margin (Margin reserved for having positions open.)
11.) our Maintenance Margin (Required margin for the position(s) to remain open.)
12.) We also have the option to close by entering in a price to the left of the yellow close box and then clicking the yellow close box; or you can choose to market close the position by clicking the red market box.
13.) The “Show all Futures” checkbox (when ticked) will show all current open positions across all contract types on that particular Deribit account.
Drop down-Menu’s on the top right of the website:
Under the account’s name drop-down menu:
- My account: This will take you into your account settings. Here, you can change your Nickname/Alias, view your current email address that is attached to the account, view and change the language the site is in if you so desire, and lastly, it has an access log that shows the date/ip address/location of each of the login attempts to your account. It also has a column that shows the success or failure of a given login attempt.
- Settings: This tab will take you a page that has notification options for things on the exchange, and has additional security options if you want to enable them.
- Transaction log: This tab will show you all the transactions associated with your account. Including funding, fees paid, opened and closed positions, affiliate earnings, transfers in and out of the exchange, among other things.
- Withdrawal: This page is where you would withdrawal your crypto off of the exchange to another exchange or wallet. You can input the address of choice, and you can see the trading balance on the exchange and what your current sessions profits are (Note: session profits cannot be withdrawn until the settlement time at 08:00 UTC), the amount you want to withdrawal, and your fee of choice for how fast you want your withdrawal to be processed and completed. There is also a withdrawal log for you to view.
- Deposit: Your BTC deposit address for this account. You can also generate a new deposit address if you want. You also have a deposit log you can view.
- Transfer: Transfer is very important. One cool thing about Deribit is you can transfer between sub-accounts and other Deribit accounts for free. It is also a near instant transfer. You can select whether you want to transfer funds to an entirely separate deribit account, or you can select the drop-down menu and choose to transfer it to one of your sub-accounts. If you choose to send funds to a sub-account, those funds are transferred to your sub-account of choice fast and free. If you are transferring to a separate Deribit account, you will need the BTC deposit address for that entirely separate Deribit account. Aside for the above, the rest is the basically the same as the withdrawal section that we covered previously.
- Download CSV (ALL): This will download all CSV files attached to the account.
- Other tabs:
Some of the other tabs include API access, Statistics for your particular account, Affiliate, and Sub-accounts.
- Security: Here you can Enable or Disable 2FA, and change your password if you so desire.
- API: API access is there for whose who want to use API programs on the exchange.
- Statistics: This tab shows you statistics about your account; such as Volume history and stats, Options trading volume history and stats, and fees paid history and stats.
- Affiliate: This section shows you your affiliate link, the number of affiliated accounts (amount of people who signed up with your link), and the amount received from those affiliates. Affiliate pay-outs happen at 08:05 UTC. You can also view the terms and conditions for the affiliate program on this page.
- Sub-accounts: This tab is where we can make and view information about our sub-accounts. You can also use this page to switch between sub-accounts; or you can use the drop-down menu under the Accounts Nickname/Alias to switch between sub-accounts as well. Refer to the Transfer section of this guide for understanding on how to move funds between sub-accounts.
Computer Icon to the right of the username:
1. Balances: shows you your equity, available balance, margin balance, PNL, Initial margin, Maintenance margin, and Delta total toward the top of the screen.
2. Chart: Deribit has tradingview integration:
3. Wide chart: Wide chart will make the chart appear in wide mode toward the top of the page. If unchecked, it will be a smaller chart wedged in between the Orderbook and the Recent trades section of the website.
4. Light Theme: Lets you toggle between Light Theme and Dark Theme for the website.
- Bell Icon: Notification section for news about the exchange.
- Flag icon: Another way of selecting your desired language of choice.
Common questions:
Q: Why would I use Deribit over Bitmex or Bybit?
A: Deribit has safe-guards in place to better prevent scam-wicks that we sometimes see on these exchanges. Deribit also has less latency issues and is an overall better exchange in my opinion. If you want to read more about some of the safe-guards deribit has to place, click here to read their medium article: https://medium.com/deribitofficial/market-orders-with-protection-efb3d6eea4b4
Q: Is Deribit safe?
A: Yes, Deribit keeps 99% of their customer deposits in Cold storage, and they have an insurance fund as mentioned previously in this guide.
Q: Can I hold various positions on Deribit? Such as being long and short on the same account?
A: Yes, if you use Deribit’s sub-account feature, you can create a sub-account and trade entirely separate from your main account. For example, if you were 1x short on 1 BTC on your main account, but wanted to take 0.10 BTC and go long, you could move 0.10 BTC to a sub-account and enter a long position that is entirely separate from your 1x short position on your main account. Just be aware that moving Equity around will alter the leverage of any open positions. Like in our example, by moving that 0.10 BTC out of our main account and to the sub-account, our main accounts position would now be a little bit over 1.10x short, rather than just 1x short.
Q: How does Funding work on Deribit for the Perpetual Contracts?
A: Funding is Deribit is Continuous. Funding is determined by the difference between the Mark Price and the Index Price on the exchange. If the Mark Price is ahead of the Index price, Longs will Pay shorts. If the Mark Price is lagging the Index price, Shorts will pay longs. Continuous funding means that funding is updated and paid out every few seconds, and it is reflected in the session RPL section under the Positions portion of the website. Funding is capped out at +/-0.50%. You can read more about the funding rate here: https://www.deribit.com/pages/docs/perpetual
For further FAQ’s, reference deribit’s FAQ section on their website: https://www.deribit.com/pages/information/faq
For further information about Deribit:
General Documentation: https://www.deribit.com/pages/docs/general
Futures: https://www.deribit.com/pages/docs/futures
Perpetual: https://www.deribit.com/pages/docs/perpetual
Options: https://www.deribit.com/pages/docs/options
Published at Thu, 31 Oct 2019 05:34:26 +0000
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