What does bitcoin mean to close a position

1.

1. Open a position and build it. In the transaction, there are usually two ways of operation, one is bullish market to do long (buyer), the other is bearish market to do short (seller). Whether long or short, placing an order is called & quot; Opening & quot;. Can also be understood as in the transaction, whether it is to buy or sell, all new positions are called open positions

2. Closing out refers to the transaction behavior of one party of futures trading in order to cancel the previously bought or sold futures contracts. Position closing is a general term for the behavior of long sellers selling their stocks or short sellers buying back their stocks in stock trading

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closing position classification

closing position can be divided into hedging closing position and compulsory closing position

1

Compulsory position closing refers to a third party (futures exchange or futures brokerage company, such as Fuhui global gold exchange trading platform) other than the position holder forcibly closing the position of the position holder

there are many reasons for forced position closing in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions, temporary changes in policies or trading rules, etc. In the standard futures market, the most common one is forced closing e to insufficient margin

specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to increase the corresponding margin or rece the position in time according to the notice of the futures company, and the market is still developing in the direction of unfavorable position, the futures company will forcibly close part or all of the customer's position in order to avoid the loss expansion, The act of filling the margin gap with the funds obtained

2. The closing ratio of each platform is different and cannot be determined. This automatic login platform will be displayed when purchasing. At present, the five domestic bitcoin trading platforms have carried out futures business. And the 796 exchange in Hong Kong
close position refers to the behavior that futures traders buy or sell futures contracts with the same variety, quantity and delivery month as their futures contracts, but with opposite trading direction, and close the futures transaction. In short, it means "sell as you buy, buy as you sell"
in fact, many people in the currency circle are against the digital currency leverage trading, but they have nothing to do. In addition to bitcoin and Leyte, other digital currencies have no leverage business. Other excellent digital currencies include Ruitai, Ruibo, bitstocks, gold cards, etc.

3. A burst is a loss greater than the margin in your account. After the company is forced to level off, the remaining capital is the total capital minus the loss, generally the remaining part<

burst: usually after overdraft investment, the loss exceeds the self owned funds

there are two cases of position explosion. One is that the futures customer still owes money to the futures exchange after closing the position, that is, the floating profit and loss of the account is equal to or greater than the total capital of the account, that is, the customer's equity is less than or equal to 0

because the market changes too fast, the margin on the account can no longer maintain the original contract before the investor has time to add margin, This kind of margin "return to zero" caused by forced closing e to insufficient margin is commonly known as "burst", and the meaning of "through" is the same as "burst"

close out refers to the behavior of a futures trader to buy or sell a futures contract with the same variety, quantity and delivery month as his futures contract, but in the opposite direction, and close out the futures transaction. In short, it means "sell what he originally bought, and buy what he originally sold (short)"<

classification of position closing:

Hedging:

hedging position closing refers to futures investment enterprises buying and selling futures contracts in the same delivery month in the same futures exchange to settle the futures contracts previously sold or bought

compulsory:

compulsory position closing refers to a third party (futures exchange or futures brokerage company) other than the position holder forcibly closing the position of the position holder, also known as being cut off or cut off

there are many reasons for forced position closing in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions, temporary changes in policies or trading rules, etc. In the standard futures market, the most common one is forced closing e to insufficient margin

specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to increase the corresponding margin or rece the position in time according to the notice of the futures company, and the market is still developing in the direction of unfavorable position, the futures company forcibly closes part or all of the customer's position in order to avoid loss expansion, The act of filling the margin gap with the funds obtained.

4.

1. Open a position and build it. In the transaction, there are usually two ways of operation, one is bullish market to do long (buyer), the other is bearish market to do short (seller). Whether long or short, placing an order is called & quot; Opening & quot;. Can also be understood as in the transaction, whether it is to buy or sell, all new positions are called open positions

Before the maturity of physical delivery or cash delivery, investors can voluntarily decide to buy or sell futures contracts according to market conditions and personal wishes

If an investor (long or short) does not perform the reverse operation (sell or buy) with the same delivery month and quantity and holds a futures contract, it is called "position". In the operation of gold and other commodity futures, whether buying or selling, all new positions are called Jiancang. After the operator builds a position, he holds a position in his hand, which is called position

(3) position closing is a general term for the behavior of long sellers selling the stocks they bought or short sellers buying back the stocks they sold in stock trading. The purpose of long selling stocks and short buying stocks is to earn profit from price difference. It is very important to realize profit from price difference or avoid losses when the market reverses

position closing is a term originated from commodity futures trading, which refers to the transaction behavior of one party of futures trading in order to cancel the previously bought or sold futures contracts

extended data:

open position, open position and close position are all terms in futures trading. The characteristics of futures trading are as follows:

1, contract standardization

futures trading is carried out through trading futures contracts, while futures contracts are standardized. Standardization of futures contract means that all terms of futures contract are prescribed by futures exchange in advance except price, which has the characteristics of standardization. The standardization of futures contracts brings great convenience to futures trading. The two sides of the transaction do not need to negotiate the specific terms of the transaction, so as to save transaction time and rece transaction disputes

2. Trading centralization

futures trading must be carried out in the futures exchange. The futures exchange implements the membership system, and only members can enter the market for trading. If those customers who are outside the market want to participate in the futures trading, they can only entrust the futures brokerage company to trade. Therefore, the futures market is a highly organized market, and the implementation of a strict management system, the final completion of futures trading in the futures exchange

Two way trading and hedging mechanism, that is, futures traders can either buy futures contracts as the beginning of Futures Trading (called buying Jiancang), or sell futures contracts as the beginning of Trading (called selling Jiancang), which is commonly known as "short selling"

hedging mechanism is also related to the characteristics of two-way trading. In most futures trading, it is not through physical delivery when the contract expires to fulfill the contract, but through transactions in the opposite direction of the transaction when the position is established to release the responsibility of performance

specifically speaking, after buying a position, the performance responsibility can be relieved by selling the same contract, and after selling a position, the performance responsibility can be relieved by buying the same contract

the characteristics of two-way trading and hedging mechanism of futures trading attract a large number of futures speculators to participate in the trading, because in the futures market, speculators have double profit opportunities. When the futures price rises, they can buy low and sell high to make profits. When the price falls, they can sell high and buy low to make profits. Moreover, speculators can avoid the trouble of physical delivery through hedging mechanism, The participation of speculators greatly increases the liquidity of futures market

In other words, traders only need to pay a small amount of margin, which is generally 5% - 10% of the contract value, to complete several times or even dozens of times of the contract transaction. This feature of futures transaction has attracted a large number of speculators to participate in futures transaction

futures trading has the characteristics that it can make a large amount of investment with a small amount of funds, which is vividly called "leverage mechanism". The leverage mechanism of futures trading makes futures trading have the characteristics of high yield and high risk

Daily non liability settlement system, also known as daily mark to market system, refers to that after the end of daily trading, the exchange settles the profit and loss, trading margin, handling charges, taxes and other expenses of all contracts according to the settlement price of each contract on that day, transfers the net amount of receivables and payable at one time, and correspondingly increases or decreases the settlement reserve of members. Brokerage members are responsible for settling accounts with customers in the same way

5. If you borrow other people's money, other people will force you to close the position in order to protect their property from loss
thank you for your question.

6. Position closing is a term derived from commodity futures trading, which refers to the transaction behavior of one party of futures trading in order to cancel the futures contract bought or sold before. Position closing is a general term for the behavior of long sellers selling the stocks they bought or short sellers buying back the stocks they sold in stock trading

7.

Forced closing is also called forced closing, also known as being cut / cut / burst. According to the different subjects of compulsory position closing, compulsory position closing can be divided into exchange compulsory position closing and brokerage compulsory position closing. It is often used in spot gold and futures trading

for example, you initially bought 100 lots of soybeans with a profit margin of 10% and a position of 300000 yuan. Now, e to the drastic changes in the market, the exchange has increased the margin ratio to 15%, and your 300000 yuan capital can only maintain 80 on hand. Therefore, either you increase more capital to maintain your 100 on hand or the futures company will close 20 soybean positions

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processing method

when the balance of member's settlement reserve is less than zero, and it is not made up within the specified time, the forced position closing can be divided into three situations:

first, when only the self operated account is in breach of contract, the position of the self operated account is forced to close in the order of the total position of the contract. If the settlement reserve is still less than zero after compulsory position closing, the investors in the agency account shall be transferred

Secondly, when only the brokerage account is in default, the balance of settlement reserve and the closing amount of the self operated account are used to make up, and then the positions in the brokerage account are forced to be closed according to certain principles

Thirdly, when both self operated account and brokerage account default, the order of forced liquidation is self operated account first, then brokerage account. If the settlement reserve is greater than zero after the position of the brokerage account is forced to close, the investor will be moved

When there is only one member in this situation, the position of self operated account should be closed first, and then the position of brokerage account should be closed. The number of closing positions of relevant investors should be determined according to the proportion of the number of excess positions of members and the number of positions of members

when there are multiple members in this situation, the members with large number of excess positions are preferred as the object of forced closing positions. If an investor exceeds his position, he shall forcibly close his position

if investors hold positions in more than one member, they should choose members to close their positions according to the order of the number of positions from large to small. If a member and an investor exceed their positions at the same time, they shall first close the positions of the investors who exceed their positions, and then close their positions according to the method of members' exceeding their positions