How to Trade Stocks with Crypto: The Ultimate Step by Step Guide

For decades, traditional markets were locked behind strict trading hours and geographic borders – until we invented the perpetual futures. 

Now, we’re bridging the TradFi world with crypto through Equity Perps. Gone are the days waiting for the Monday opening bell. Trade the S&P 500 even when markets are closed, react instantly whenever Elon Musk tweets on the weekends, and trade without TradFi constraints. 

In this article, we’ll walk you through how you can open your first Equity Perps trade and how to manage the risks as well. Let’s dive in. 

What Are Equities?

In finance, equities represent the shareholder’s stake in a company like a common stock. When you buy a share of a company like Apple ($AAPL), you are buying a fraction of that company. A shareholder also has certain rights like voting and having a claim on the net assets. Meaning, if the company was liquidated, the remaining amount would be distributed to shareholders after liabilities are settled.Investors usually buy equities to speculate on price or for the dividends payout. 

The Limitations of Traditional Trading

However, accessing these markets poses some hurdles for the average user, such as opening a brokerage account, geographic restrictions, and not to mention the limited trading hours. 

• Limited Hours: U.S. stock markets like the NYSE or Nasdaq typically open on the weekdays between 9:30 AM to 4:00 PM ET. For traders wanting to react to certain news on the weekend or earnings results outside of market hours – trading traditional markets is a burden. 

• Traditional Hurdles: Many traditional brokers have limitations - including markets, geographic, minimum deposits etc. preventing traders to access. 

• Inefficiency: Moving money and even selling equities can take days to settle (T+1 day) especially when you’re on a cash account. 

• Shorting Restrictions: Shorting an equity Betting against a stock (shorting) in TradFi is difficult, often involving high borrowing costs and inventory limits.

The Solution? BitMEX Equity Perps

It’s no secret that perpetual swaps are the greatest finance invention in the 21st century. No more clunky expiring quarterly futures, no more rolling over, no more waiting for markets to open– it’s a wet dream for traders. However, traditional markets had structural hurdles that prevented them from integrating perps – until today.

BitMEX has launched Equity Perps to solve these exact problems. This product allows you to gain exposure to the price movements of major global stocks and indices using cryptocurrency as collateral.

This removes the need to convert your crypto back to fiat, send it to your broker, wait T+1 days to settle, and then finally trade stocks. You can keep your Bitcoin or Tether, yet still profit from the movements of traditional markets like Tesla, Nvidia, and other global equities.

What Are Equity Perps?

Equity Perps are derivative contracts that track the price of an underlying stock or index. Unlike traditional futures, they do not have an expiration date and can be traded 24/7/365 – even when markets are closed. You can hold the position as long as you like, provided you have enough margin. 

Key Features:

• Crypto Collateral: Use BTC, ETH, USDT, and more to open positions.

• 24/7 Trading: Trade continuously, even when the NYSE is closed. Prices outside US hours are maintained by tokenised spot prices from other exchanges or internal mechanisms

• Short with no limits: Traditional markets are supply constrained, have high borrowing costs, and recall risks that make betting against a stock challenging. With perps, you can bet in any direction anytime. 

• High Leverage: BitMEX Equity Perps allow you to trade up to 20x leverage.

• Cash-Settled: You don't physically own the stock share; you speculate on its price difference.

Note: BitMEX is currently offering a 70,000 USDT prize pool and up to -0.025% Maker Rebates for trading these contracts.

Step-by-Step: How to Trade Stocks on BitMEX

Ready to start? Follow this simple guide to executing your first Equity Perp trade.

1. Register and Verify (KYC)

To trade on BitMEX, you must have a verified account. you will need a valid ID and may be asked for proof of address, so be sure to have those ready. KYC completion can vary depending on your jurisdiction.

If you haven’t signed up for a BitMEX account yet, we’re currently offering $5,0500+ worth of trading credits to new users - you can register here. 

2. Navigate to the 'Equities' Category

Once logged in to the trading terminal:

• Click on the market dropdown menu (usually at the top left).

• Select the "Equities" tab.

• You will see a list of available tickers such as $AAPLUSDT, $TSLAUSDT

3. Select Contract and Set Leverage

• Choose the equity you want to trade (e.g. TSLAUSDT).

• Set your leverage: You can choose up to 20x.

• Choose Order Type:

  • Limit Order: Buy/Sell at a specific price (Earns Maker Rebate).

  • Market Order: Buy/Sell immediately at the current price (Pays Taker Fee).

• Input Your Order Price: If you selected a Limit Order, you must specify the price at which you want your order to be executed.

• Choose your Direction: Choose long (to bet the equity will rise) or short (to bet against the equity). 

To learn more about placing your first trade order, read here.

4. Manage Your Position

Once your order is filled, it will appear in your "Overview" and “Positions” tab.

• Monitor Metrics: View your PnL, Funding rate, Margin, and other data at a glance.

• Know your Breakeven: What to set a Stop Loss near breakeven? Simply expand the positions to view. 

• Funding Rates: Be aware of the funding rate, which is exchanged between longs and shorts every 8 hours to keep the perp price close to the spot price.

Risk Management Tips

Trading with leverage requires discipline. Here are a few tips to protect your capital:

1. Start Small: If you are new to Equity Perps, it’s best not to use the full 20x. Start with 2x or 3x to familiarise with the system and the volatility.

2. Use Stop Losses: Always set a Stop Loss order. This automatically closes your trade if the price moves against you and protects your capital.

3. Monitor Your Positions: Unlike traditional markets, equity perps trade 24/7 – even when markets are closed. Keep in mind that multiple catalysts can occur outside of market hours such as earnings or geopolitical movements.