What does BTC margin call mean

1.

Margin call is because the value of the futures contract you buy changes, resulting in floating losses in the futures contract. Your margin may not be enough to cover these losses and you need to increase your margin. If you don't increase the margin in time, you will be forced to close out

The futures market originated in Europe. As early as in ancient Greece and Rome, there were central trading places, bulk barter trading and futures trading activities. The initial futures trading is developed from spot forward trading. The first modern futures exchange was founded in Chicago in 1848, which established the model of standard contract in 1865

In the 1990s, China's modern futures exchange came into being. There are four futures exchanges in China: Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and China Financial Futures Exchange. The price changes of listed futures have a profound impact on related instries at home and abroad

2. If the equity of the day is less than the position margin, it means that the fund balance is negative, and it also means that the margin is insufficient
according to the regulations, the futures brokerage company will inform the account owner to make up the margin before the opening of the next trading day (8:50 of the recovery notice), which is called margin call

3. Margin calls include but are not limited to: < br > 1. When the guarantee ratio is less than 150%, margin calls must be more than 150%< Br > 2. When the maintenance guarantee ratio is less than 130%, if the margin is not added as agreed, the position will be forced to close. You can add margin according to the actual situation of your account.

4. Margin call refers to the amount of margin required by the clearing house to be increased in order to maintain the margin at the initial margin level when the margin account of a member is short
margin increase refers to the amount of margin required by the clearing house to be increased in order to maintain the margin at the initial level when the amount of the member's margin account is short

in order to prevent the occurrence of liabilities, the clearing house adopts the principle of marking to the market, and uses the daily clearing price to calculate the profit and loss of members' net trading positions. When a loss occurs and the amount of margin account decreases, the clearing house requires members to pay additional margin.

5. Margin call refers to the clearing house or brokerage bank notifying the client to increase margin when the margin level of the client is lower than the minimum margin requirement. The characteristics of margin call notice are that the balance of assets in the member company's or customer's capital account has been lower than the minimum maintenance margin standard stipulated by the securities management department, the exchange or the brokerage company, and the balance of funds in its capital account can no longer meet its capital demand for expanding Trading. Usually, the clients of member companies or brokerage companies must keep a certain proportion of the fund balance in the fund account opened by the exchange or brokerage company, which is called basic margin or maintenance margin. There is such a basic margin or maintenance margin in the capital account, which plays an important role in preventing the default in the transaction and the failure to use funds to offset in time to complete the transaction. It is also the main basis for the exchange clearing company to send the maintenance call notice to the member brokerage company or the brokerage company to its customers.

6. Futures is a kind of thing traded in the form of contract, and the trading object is mainly trading contract. Futures are divided into commodity futures and stock futures. At present, there is no stock futures in China
futures are relative to spot. They have different delivery methods. Spot is cash, and futures is contract transaction, that is, mutual transfer of contracts. The delivery of futures has a time limit. It is a contract transaction before the maturity, but the maturity date is to honor the contract for spot delivery. Therefore, large futures institutions often do both spot and futures, which can be used for hedging and price speculation. Ordinary investors often can not do e delivery, only pure speculation, and the speculative value of the commodity is often related to the spot trend and the term of the commodity and other factors
it's very easy to open an account. Just find a futures company to open an account. Sign a contract and pay a certain amount of margin to enter the market for trading
futures trading is a contract trading, and you only need to pay the deposit of the actual price of the corresponding commodity - margin - for each transaction. The specific margin ratio is determined by the futures exchange according to the market situation, and the futures companies will also adjust
for example, if you buy the futures of commodity a, the margin ratio is 1:10, and the trading price is 10000 yuan per unit. Then you only need to pay 1000 yuan to buy a unit of commodity a. If the price of commodity a goes up by 10%, you will double, and your 1000 will become 2000. If the price of commodity a drops by 10%, you will lose out. If you close your position at the moment, your 1000 will become zero. If you want to continue to hold your position, you must add margin. Many people are not satisfied with the market, continue to increase margin, and finally their families are ruined
at present, there are companies in China acting as agents for futures trading, but the risk is very high
additional margin refers to the margin required by the clearing house to be paid by members in order to maintain the margin at the initial level when the margin account is short
in order to prevent the occurrence of liabilities, the clearing house adopts the principle of marking to the market and uses the daily clearing price to calculate the profit and loss of members' net trading positions. When a loss occurs and the amount of margin account decreases, the clearing house requires members to pay additional margin. In the process of margin trading, according to the evaluation loss, if the evaluation loss of the retained list reaches the specified amount, that is to say, when the evaluation loss exceeds 40% of the trading margin occurs, or when the minimum advance margin balance of the account falls below the bottom line of 60%, the insufficient amount will be required to be added
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 what they originally bought, and buy what they originally sold (short)"

7. When the account capital is less than the minimum maintenance margin of the securities company, it is necessary to add margin. Otherwise, it will be forced to close positions and prohibit trading.

8. Take iron ore as an example to explain. For example, if the current price of iron ore is 500, the leverage is 100, and the exchange now stipulates a 10% margin, then if you trade primary iron ore, you can buy primary iron ore by 500 times 100 times 10%, which is 5000 yuan. If you have 6000 yuan in your account, you can buy 5000 yuan of iron ore, and the balance is 1000 yuan. The price of iron ore has dropped by 15 points, and your balance is 1000-1500 = - 500. At this time, the exchange will change to 15% margin to make primary iron ore. then 490 times 100 times 15% of primary iron ore will be 7350, and your account will be 4500 from 6000-1500. At this time, you owe the exchange 7350-4500 = 2850 yuan. Therefore, the exchange will call you, or add margin of 2850 yuan, or it will give you the hand of iron ore to close out. After closing, your account number is 4500 yuan
I'm so tired after typing so many words!

9.

Additional margin refers to the margin required by the clearing house to be increased in order to maintain the margin at the initial margin level when the margin account of a member is short. Margin increase refers to the amount of margin required by the clearing house to be increased in order to keep the margin at the initial level when the amount of margin account is short. In order to prevent the occurrence of liabilities, the clearing house adopts the principle of marking to the market and uses the daily clearing price to calculate the profit and loss of members' net trading positions. When a loss occurs and the amount of margin account decreases, the clearing house requires members to pay additional margin

compulsory position closing refers to that when the trading margin of members or customers of futures exchange is not sufficient within the specified time, or when the position of members or customers exceeds the specified limit, or when members or customers violate the rules, the exchange implements compulsory position closing in order to prevent further expansion of risk. There are many reasons for compulsory 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, it means that when the trading margin required by the customer's position contract is insufficient, and the customer fails to add 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