What does bitcoin hedge mean

Hong Kong Hengtong Antai binary options let you answer, first you need to know what is hedging? Hedging is an investment designed to rece the risk of another investment. This is a way to rece business risk and profit from investment. General hedging is two URLs: http: / / quotes / url related, opposite, equal, break even transactions. Market relevance refers to the relationship between market supply and demand that affects the prices of two kinds of commodities. If the relationship between supply and demand changes, it will affect the prices of the two commodities, and the direction of price change is generally the same. The opposite direction means that two transactions are trading in the opposite direction, so no matter what the direction of price change is, there will always be profits and losses. Of course, to achieve balance of payments, the scale of the two transactions must be determined according to the range of price changes, which is roughly the same. In foreign exchange and options trading, perfect hedging is created by binary options. In fact, the return of perfect hedging is zero. Compared with the traditional foreign exchange transaction, the foreign exchange al option transaction is simpler and more profitable. Similarly, binary option trading can hedge assets such as currency and stocks. Binary option is a new trading method for most domestic investors. Opportunities and risks coexist. Only through continuous learning, can we grasp the opportunity to the greatest extent, avoid trading risks, and become a master of binary option trading

Guangdong Open University

In short, the principle of brick Arbitrage: buy low and sell high, buy money from the place with low price and sell it at the place with high price, that is to earn the price difference of different platforms

but there are three risks in moving bricks:

A. time difference of currency transfer: it takes a certain waiting time to pick up or deposit the currency, so it may miss the best trading time

B. currency price fluctuation: if the currency price fluctuation is relatively large and the process of moving bricks has not been completed, the price difference has disappeared

C. platform problems: some trading platforms may shut down services from time to time, or even run away

principle: carry out brick arbitrage on two platforms at the same time to avoid the risk of "time difference of currency transfer" and "currency price fluctuation"

before moving bricks: the brick moving platform must support the same currency transaction, and the brick moving platforms must be able to transfer currency to each other

Step 1: price difference calculation. There are handling charges for currency trading and currency transfer, so you have to calculate the cost according to your own funds. Only when the price difference reaches how much can it be profitable to move bricks

Step 2: simultaneous operation. Buy BTC on the low price platform and sell BTC on the high price platform. At this time, the number of BTC holdings remains unchanged and the number of usdt increases You need to pay attention to transaction fees.)

Step 3: balance funds. It is difficult to predict which platform has a lower price and which has a higher price e to the price difference. Therefore, the two platforms that move bricks need to prepare usdt and BTC. When the price difference appears, it is convenient to move bricks There are also handling charges for cross platform currency transfer.)

the above is the principle and steps of risk-free arbitrage using BTC and usdt. It also has a big name: quantitative hedging. The fundamental purpose is to earn usdt, not BTC