GMX decentralized futures trading How to trade with leverage on GMX (Class 18)
Summary
TLDRThis tutorial explores decentralized trading options for those restricted from margin trading in cryptocurrency futures markets. It guides viewers through setting up MetaMask, transferring funds between layers, and leveraging GMX for trading. The video also demonstrates how to swap currencies, set leverage, and execute trades, highlighting the platform's accessibility for US users. Additionally, it introduces a tool for copying successful traders' strategies and emphasizes the importance of choosing the right trading pair for beginners and experienced traders.
Takeaways
- 🌐 Countries are increasingly restricting access to margin trading for cryptocurrencies in the futures market.
- 📚 The script is part of a step-by-step guide, specifically class 18, focusing on trading derivatives on a decentralized platform.
- 🔑 To get started with decentralized trading, one needs to have a compatible wallet like MetaMask and sufficient funds.
- 💡 The tutorial demonstrates moving funds between different layers (Layer 1 to Layer 2) and scaling solutions.
- 🤑 The presenter shows the process of withdrawing funds from a broker to a MetaMask wallet and choosing a network for the transaction.
- 🔄 The script covers bridging funds from one layer to another, specifically from Optimism to Arbitrum.
- 📈 The GMX platform is used as an example for trading on a decentralized protocol, but alternatives like dydx and perpetual are mentioned.
- 💰 The presenter explains how to swap currencies on GMX, similar to a spot market, and then proceed to leverage trading.
- 📊 The script highlights the ability to analyze and copy successful traders' strategies on the platform, which can be educational for new traders.
- 🚀 The tool mentioned allows tracking of top traders' performance and copying their trades, which can be a powerful feature for learning and potential profit.
- ✅ The video concludes with a mention of an upcoming class on choosing trading pairs and a discount code for trading fees.
Q & A
What is the main topic of the video script?
-The main topic of the video script is about trading cryptocurrencies on the futures market using decentralized trading protocols, specifically focusing on how to navigate restrictions on margin trading in certain countries.
Which decentralized trading protocols are mentioned in the script?
-The decentralized trading protocols mentioned in the script are GMX, dydx, and perpetual.
What is the role of MetaMask in the trading process described?
-MetaMask is used as a wallet to store and manage funds for trading. It is also used to interact with decentralized trading platforms.
What is Layer 1 and Layer 2 in the context of the script?
-In the context of the script, Layer 1 refers to the Ethereum blockchain, while Layer 2 refers to scaling solutions built on top of Ethereum to enable faster and cheaper transactions, such as Optimism and Arbitrum.
How does the script describe the process of moving funds between different layers?
-The script describes the process of withdrawing funds from a broker to a MetaMask wallet and then bridging those funds from one layer to another, specifically from Optimism to Arbitrum.
What is the purpose of using a network like Arbitrum or Optimism in the script?
-The purpose of using networks like Arbitrum or Optimism is to take advantage of their scaling solutions to perform faster and cheaper transactions compared to the main Ethereum network.
What is the significance of the 'swap currencies' feature in the GMX platform?
-The 'swap currencies' feature in the GMX platform allows users to exchange one cryptocurrency for another, similar to a spot market, before engaging in leverage trading.
What is leverage trading and how is it demonstrated in the script?
-Leverage trading is a method of trading where a small amount of capital is used to control a larger amount of investment,放大 the potential gains (and losses). In the script, it is demonstrated by the user selecting a 4x leverage to trade USDT for Ethereum.
How does the script address the issue of trading restrictions in certain countries?
-The script addresses the issue by suggesting the use of decentralized trading protocols, which can bypass certain country-specific restrictions on margin trading.
What is the purpose of the tool mentioned at the end of the script?
-The tool mentioned at the end of the script allows users to view and potentially copy the trades of successful traders on the GMX platform, providing a way for less experienced traders to learn from the strategies of more successful ones.
What is the importance of the GitHub repository mentioned in the script?
-The GitHub repository mentioned in the script contains the source code of the trading platform, which could potentially be used by developers to create tools or notifications based on the trading activity of successful traders.
What is the next step suggested for viewers interested in trading futures markets?
-The next step suggested for viewers interested in trading futures markets is to attend the upcoming class that will go in-depth on understanding how to pick a trading pair and which trading pairs to use as a beginner or a pro trader.
Outlines
🌐 Navigating Crypto Trading Restrictions
This paragraph introduces a class focusing on alternative trading options for users in countries where margin trading for cryptocurrencies is restricted. The instructor outlines the use of decentralized trading protocols like GMX, dydx, and perpetual, and emphasizes the necessity of having a compatible wallet like MetaMask. The process of transferring funds from Layer 1 to Layer 2 networks is explained, including a demonstration of moving funds from a broker to MetaMask and bridging between different scaling solutions like Optimism and Arbitrum. The segment also covers the importance of selecting the right network and provides a walkthrough of connecting the wallet to the trading platform.
🔄 Leveraged Trading on Decentralized Platforms
The second paragraph demonstrates how to trade with leverage on a decentralized trading protocol, using GMX as an example. It details the steps to connect a MetaMask wallet, swap currencies, and set leverage levels for trading. The instructor shows a practical example of going short on the market without prior market analysis, highlighting the process of approving transactions and confirming trades. The paragraph also touches on the ability to close positions, set profit targets, and the potential of using testnets for practice. Additionally, it introduces a tool for copying trades from successful traders on the platform, emphasizing the value of learning from their strategies and the possibility of creating a notification system for tracking their trades.
📈 Analyzing Successful Traders' Strategies
The final paragraph discusses the importance of analyzing successful traders' strategies on the GMX platform. It showcases how to view the performance and trade history of top traders, including their leverage usage and the number of wins and losses. The instructor suggests that by studying these traders, one can gain insights into effective trading strategies. The paragraph also hints at future classes that will delve into choosing the right trading pairs and concludes with a sign-off, inviting viewers to join upcoming sessions.
Mindmap
Keywords
💡Margin Trading
💡Cryptocurrencies
💡Futures Market
💡Decentralized Trading Protocol
💡MetaMask
💡Layer 1 and Layer 2
💡Leverage
💡Short Selling
💡Decentralized Exchange (DEX)
💡Bridging Tokens
💡Trading Fees
💡Copy Trading
Highlights
Class 18 of the step-by-step guide on trading the futures market focuses on decentralized trading protocols.
GMX, dydx, and perpetual are mentioned as platforms for decentralized margin trading.
MetaMask is used as the primary wallet for the demonstration.
The importance of adding funds to the wallet for trading is emphasized.
Instructions on moving funds between Layer 1 and Layer 2 blockchain networks are provided.
Demonstration of withdrawing funds from a broker to MetaMask using USDT as an example.
Explanation of choosing a network for transactions, with a focus on Optimism and Arbitrum.
Guide on bridging tokens from one layer to another, specifically from Optimism to Arbitrum.
The process of connecting a wallet to GMX for trading is outlined.
Swap functionality in GMX is compared to a spot market for currency exchange.
Leverage trading options up to 100x are discussed, with a 4x example given.
A walkthrough of shorting the market using USDT on GMX is provided.
Instructions on closing a trade and setting profit targets using GMX.
Mention of using testnets for practice trading without risking real money.
Referral code provided for trading fee discounts on the platform.
Introduction of a tool for copying successful traders' strategies on GMX.
Discussion on analyzing and potentially automating notifications for successful traders' moves.
Upcoming class on picking trading pairs for futures market trading.
Transcripts
more and more countries are restricting
users from accessing margin trading when
it comes to trading cryptocurrencies on
the futures market in this class we're
going to look at several options that
you can use if your country is
restricting you from accessing margin
trading this is class 18 of our
step-by-step guide on how to trade the
futures market obviously in this class
we're focusing on
how to trade the derivatives market on a
decentralized trading protocol let's get
started we're going to be using gmx for
this example but you can also use dydx
and also perpetual to get started just
make sure that you have your meta mask
installed or whatever wallet that you're
actually using you can use multiple
wallets but in this case i'm going to be
using metamask not only that but you
also need to add funds on your wallet
i'm going to be showing you step by step
how to move funds from layer 1 to layer
2 or to move from layer 2 to other layer
2 scaling solutions to do that i'm just
going to move to my broker here and you
can see i have a little bit of fans here
so what i'm going to do is that i'm
going to withdraw these funds to my meta
mask over here so i'm going to click on
withdraw
and i'm just going to come to my
metamask wallet over here
and i want to go ahead and copy my
wallet address so once that i've got
that sorted out i'll come here and i
actually want to withdraw usdt
then i'll actually paste my wallet
address over here just make sure that
you have your wallets pasted correctly
so from here i'll then choose a network
you can see you've got erc20 ibitron one
again this platform that we're going to
be using here is on abitram and also on
avalanche you can see you've got
avalanche and arbitron so let's come
back here
over here i will choose
let me look for a cheaper network i'll
choose optimism i'll show you how to
bridge from optimism to abertron so now
i'm just going to go ahead and withdraw
everything and i can go ahead and
confirm my wallet which is the first
three digits
and the last three digits so i'm just
gonna come here to my wallet again
then i'll confirm the last three numbers
in this case you can see these numbers
are correct i'll go ahead and withdraw
this
so now we're actually done with drawing
which means we have successfully moved
these funds from our wallet to our meta
mask so what i'm going to do in this
case is to bridge these funds from one
layer to another layer so in this case
i'm going to come here and select usdt
you can see that our funds are already
here about 500 of them so i'm gonna go
ahead and click max so i'm basically
moving these funds from optimism
remember when we withdraw from this side
we use optimism
now when i actually come here you can
see that we do have these funds on
optimism i want to bring them over to
abertron so i'm going to go ahead and
send this over to abitrum
i'll switch networks
then go ahead and send these funds over
so now you can see that we have
successfully bridged the tokens from
optimism to other tram again you can use
any other chains but i just wanted to
show you that you can obviously move the
fans from layer one which is ethereum to
avert ram the next step is to come to
gmx to start trading from here all right
now that we actually preached our fans
over from optimism to upper tram we can
now go ahead and connect our wallet
so i'm gonna go ahead and just switch
networks
again if you don't have these networks
within your wallet you can just come to
this website here which is which is
chain list dot io once you're here you
can just connect this to your meta mask
for example if i look for a network that
i don't have within my meta mask i can
just click on add to meta mask which
will then add this network to your meta
mask or you can use this information
right here to add that network manually
but i don't want to do that so i'm going
to cancel this i just wanted to show you
that you can do something like that so
the first thing you need to know is that
you can swap currencies so this is
equivalent to a spot market you can swap
one currency for another for example
because we deposited that 500 usdt i can
just click on that and then swap that
usdt for ethereum but let's just come to
leverage trading again here you can
decide your leverage you can see you can
go up to dx but in this case i'm just
going to keep it let's say at 4x for
example
then
what i'm going to do is that i want to
trade
with
this usdt
so i'm going to click on max
so in this case i want to go short right
let me look at that yeah i want to go
short on the market so in this case i
want to go short so i'm going to select
usdt again i didn't do any analysis i'm
just doing this for the sake of this
video then i'm going to click on max
i'm going to go ahead and approve this
and also approve that for the new meta
mask
so now you can see that i've approved
everything
now if you come here
maybe that's it's going to be a great
opportunity for us to go short so i'm
going to go ahead and show the market
from here
i'm going to confirm this
so this right here will be your position
and you can see that i'm holding about
1.19 ethereum so that's it because i'm
on 4x leverage so that's how you can
trade on leverage using this
decentralized trading protocol so a lot
of people have been asking me that how
do they trade especially for those of
you who are in america because when
you're in america sometimes these
centralized exchanges um do not really
allow clients or customers from america
so you can use this platform i'm gonna
leave a link in the description of this
video
so again i didn't analyze the market i'm
just you know showing you uh basically
how you shot you can see this thing is
fluctuating up and down that's really
made i want to close this trade just now
so right now you can see the trade is in
profit but again it doesn't really
matter i'm not trading this to make
money i just wanted to show you how to
short or go along on a decentralized
trading protocol so if i wanted to close
this position i'll just click on close
position over here from here you can
then click on max which means you
literally just want to close everything
then it will show you your losses and
how much money you're actually making or
you can go ahead and click on trigger
where you can for example put 1500 as
your target price which means when the
price reaches 1 500 you will actually be
taking profit of 150 us dollars from
there you can just go ahead and enable
the trade and then that's all that you
need to do so go ahead and play with
this again you can use other trading
protocols to actually trade on a test
net which means you don't necessarily
have to be using your own money but you
can play with this on a demo account so
i'll leave a link to that in the
description of this video for those of
you who want to get discount on your
trading fees just go to referrals and
once you're here click on traders and
actually put this code which is capital
to v double three that's all that you
need to do in order for you to get up to
ten percent of your trading fees i wanna
discuss this tool here which is
something really really amazing so i'm
just gonna go back again i'm gonna leave
the links in the description of this
video so this tool is really really
amazing for those of you who are just
getting started in trading or maybe for
those of you who are not really really
comfortable because here we can see the
most successful traders on gmx so i'm
going to click on dashboard what i want
to do here is to click one month
obviously i can select 24 hours seven
days or one month from here we can see
the most successful traders on this
platform you can see this month this
trader here has made over
hundred thousand dollars in profit and
we can see that they took 17 trade with
zero losses which is something very very
great so what we can do is to click on
this trader here and sort of like look
at all the trades that you know this
trader has taken she or he has taken so
if you actually look here you'll see
where they went long where they went
short and all that stuff so
for example here you can see
all these 17 traits with no loss so
that's amazing but the nice thing is
that we can actually
copy what this trader is doing this is
all the data coming in in the past uh 45
hours and you can see the last profit
they made was 35 000
77 so that was 10 hours ago so we can
actually come here and click and see
again guys if we go back you can see the
the trade history where this trader
actually was going long or going short
everything is detailed for you here on
the charts so we can come here and click
on this icon
and sort of like look at this trade in
more details you can see that this
trader here made 15 on the trade making
46 000
and from here you can see where it says
open which means this is where the trade
was open which is basically about 16
hours ago the margin collateral that was
used is 56 000 or rather 52 000
and
the opening price here was 1679
and then they closed this trade at 1682.
you can see that this person went short
went rather long because they bought at
1 1679
closing at 1682
so they just took advantage of that
small price different so you can see
that you can actually make a lot of
money if you actually have a lot of
collateral obviously this is not
financial advice i just wanted to show
you this tool and what i think i can do
here i'll you know speak to one of the
few developers that i actually know i
think it's possible to actually get this
data
from these traders if we can actually go
back you can see this is actually on
github so it's got a github repository
so which means if i click on that i can
actually be able to see the code the
source code of all this and how it
functions which is giving me an idea of
actually
coding something that can you know give
me a notification every time these
people take the trade i think that would
be a great tool because now you're
following someone who has actually a
proven record let's click back on
dashboard again i've got one month
selected here i can select in the past
seven days for example you can see this
trader took 11 trades with two losses
from here you can also see that they're
using 18x 25x 8x so this is the leverage
size that they're actually using in the
next class we're gonna go in-depth with
understanding how to pick a trading pair
for those of you who want to get started
with trading the futures market and
which trading pairs you should be using
as a beginner or as a pro trader that
glass is connected coming up next i will
see you there goodbye for now peace
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