Position: Home page » Bitcoin » BTC's burst margin is gone

BTC's burst margin is gone

Publish: 2021-04-22 09:22:02
1.

Borrow money to buy bitcoin, when the price falls to the principal and the borrowed bitcoin is only enough to repay the borrowed money, the bitcoin burst


position explosion refers to the situation in which the customer's rights and interests in the investor's margin account are negative under some special conditions. Burst is back to the loss is greater than the margin in your account. After the company's strong level, the remaining capital is the total capital minus your loss, generally the remaining part


the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system

Unlike all currencies,

bitcoin does not rely on a specific monetary institution. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation

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3. There are no more.
for example, if you buy copper with 10 yuan in your account, you need 1 yuan of deposit, so you still have 8 yuan to use.
if you lose all the copper with 1 yuan, the futures company will not look for you at this time,
because the 8 yuan in the account can be redistributed as: new 1 yuan deposit + 7 yuan of the rest,
until you lose another 7 yuan, There is no money in the account. If the position is burst, the futures company will chase you for debt
of course, if you have 2 yuan in your account, you will lose 1 yuan and your position will burst
a position explosion depends on whether there is any money left in your account that can be used as margin
4. Investors in the process of speculation spot, the burst phenomenon often occurs when the market changes, once the investors handle improperly, not only easy to cause serious financial losses, but also to increase their psychological burden, thus losing investment confidence. Therefore, investors need to have a comprehensive understanding of the reasons for the burst of gold speculation, in order to avoid the burst to the maximum extent
spot position explosion refers to the fact that spot investors' account loss reaches the lower limit specified by the trading platform, that is to say, the account can no longer lose money. At this time, the system will force the account to close out. Then this process is called spot silver burst
in the spot trading system, there is the concept of spot burst rate, that is, when there is more margin left in the spot silver investor's account, the system will force the closing of positions. Of course, different trading platforms have different burst rates, which can be understood by consulting the platform. For example:
suppose that if the burst rate is 50%, the capital of account a is 100 US dollars, and the margin is 10 US dollars. When a loses all 100 US dollars in the account, and even 10 US dollars in the margin is lost by 50%, it will burst, that is, the margin is lost by 5 US dollars
if the burst rate is 100%, when a loses $100 in his account and only has $10 in margin, it will burst
the main reasons for the general spot speculation are as follows:
1. This is the main reason for the burst of positions. With a large proportion of leverage, the ability to resist risks is very poor. The magic barrier of his psychology is the thought of eager for quick success and instant benefit and getting rich overnight. Prevention method: light warehouse, small quantity, fine water flow. For example, if you have 10000 US dollars, with 100 times leverage, you can open a position no more than one hand at a time. In this way, the anti risk ability is more than 900 points, and the risk degree is about 10%. If the heavy position uses 100 times leverage and opens 10 short positions, then the anti risk ability is less than 100 points and the risk degree is more than 90%. Like today's gold, a sharp rise of $10 will blow up. Some people may think that the position is too light and making money is too slow. In fact, the essence of making money by trading is to make money by compound interest rather than explosive interest. As for the mode of making money with compound interest, each one is different, so we can summarize it in practice. Send you a pithy formula: light warehouse, small quantity, follow the trend; A little makes a lot
2. Refuse to admit your mistake: once you make a mistake, you can't make a decision immediately. But they resisted until they burst their positions and put their "lives" into them. They had to be forced to close their positions without bumping into the south wall or looking back. They also boasted that there were tigers in the Ming Dynasty, and they preferred to travel on tiger mountain. "A man is a man who stands up to heaven and looks down upon death as if he were going home.". I don't know that I came to this market to make money, not to stand up and save the beauty. Will not and money, storm warehouse, no matter what also stand up. We should learn to survive at break even before we consider how to make money. Psychological misunderstanding: good face, vanity. Prevention method: firmly remember the sentence, "professional speculators do not need vanity."
3. No stop loss: in addition to the word "shoudan", the most talked about word is stop loss. However, many people are still in short positions because there is no stop loss. The reasons are: first, psychological barriers, and then technical factors. The psychological obstacle is mainly reflected in the fluke mentality. Once you open your position, you can wait with no stop loss. It's like tying yourself to a car that has no brake system and will overturn at any time. Fortunately, you hope that the price will move in the direction of your opening position. But speculation is not a gamble, luck and luck can not always be accompanied by their own, in order to stabilize profits, or rely on their real strength. The market has its own rules of operation, which are not transferred by anyone's will. Therefore, the bad trading habit of fluke psychology should be eradicated in its own trading behavior as soon as possible, otherwise it will cause endless trouble
4, frequent in and out, excessive trading: some people storm their positions because they are too heavy, but some people storm their positions even if they are too light. The reason is "frequent in and out, excessive trading". From the psychological point of view, there is no plan, eager to turn over the book, to make random orders, to make emotional orders. In the end, the mentality is very bad, and the odds are very high. It's like cutting meat with a blunt knife, cutting it away bit by bit, and then the warehouse is stormed“ Frequent in and out, excessive trading ", there is also a psychological magic barrier, which is the tendency of self abuse of" breaking the pot, breaking the fall ". I think that anyway, I've lost like this, so I'm free to play. This is the same as the psychology of some investors who are trapped in a high position and let go. Don't underestimate this subconscious trading tendency of "self abandonment". The market is fair. Even if you don't cherish your own money and every transaction, then the market will not give you good returns. The market is ruthless and specializes in fixing people who trade with their emotions.
5.

If there is a surplus in the account amount after forced closing, the margin will not disappear

in the process of holding a position, a trader will have a floating profit and loss (the difference between settlement price and transaction price) e to the continuous change of market conditions, so the funds that can actually be used to make up for the loss and provide guarantee in the margin account will increase or decrease at any time

floating profit will increase the balance of margin account, while floating loss will rece the balance of margin account. The minimum balance that must be maintained in the margin account is called maintenance margin. Maintenance margin: settlement price x position x margin ratio XK (k is a constant, called maintenance margin ratio, which is usually 0.75 in China)

When the book balance of margin is lower than the maintenance margin, the trader must replenish margin within the specified time to make the balance of margin account equal to or greater than the settlement price x position x margin ratio, otherwise, on the next trading day, the exchange or agency has the right to forcibly close the position. This part of the new margin is called margin call

for the positions forced to close out, the exchange shall follow the principle of speculation first and hedging later; According to the order of the total positions of the contracts after the market closed on the previous trading day, the contracts with large positions should be selected as the forced closing contracts; Then, the net position loss of the contract of all investors of the member shall be determined from large to small. If more than one member needs to close the position by force, the member who needs to increase the margin should be closed first according to the order of margin increase from large to small

6. If there is a surplus in the account amount after forced closing, the margin will not disappear
in the process of a trader's position, the floating profit and loss (the difference between the settlement price and the transaction price) will occur e to the continuous change of the market situation, so the funds that can actually be used to make up for the loss and provide guarantee in the margin account will increase or decrease at any time
floating profit will increase the balance of margin account, while floating loss will decrease the balance of margin account. The minimum balance that must be maintained in the margin account is called maintenance margin. Maintenance margin: settlement price x position x margin ratio XK (k is a constant, called maintenance margin ratio, which is usually 0.75 in China)
extended data
when the book balance of margin is lower than the maintenance margin, the trader must replenish margin within the specified time, so that the balance of margin account is equal to or greater than the settlement price x position x margin ratio, otherwise, the exchange or the agency has the right to implement forced closing on the next trading day. This part of the new margin is called margin call
for positions forced to close out, the exchange shall follow the principle of speculation before hedging; According to the order of the total positions of the contracts after the market closed on the previous trading day, the contracts with large positions should be selected as the forced closing contracts; Then, the net position loss of the contract of all investors of the member shall be determined from large to small. If more than one member needs to close the position by force, the member who needs to increase the margin should be closed first according to the order of margin increase from large to small
source of reference: Sogou Network - forced position closing
source of reference: Sogou Network - Futures Margin
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8. 753 get off at the next stop of jingshuyuan
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