Will bitcoin be forced to close positions every day

1. 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.

2. 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.

3. 1. The definition of contract
futures contract is an agreement that the buyer agrees to receive an asset at a specific price after a specified period of time, and the Seller agrees to deliver an asset at a specific price after a specified period of time
the price that both parties agree to use in future trading is called futures price. The specified date on which both parties must conct transactions in the future is called the settlement date or the delivery date. The assets agreed to be exchanged by both parties are called "subject matter"
If an investor takes a position in the market by buying a futures contract (i.e. agreeing to buy on a future date), it is called long position or long in futures. On the contrary, if the position an investor takes is to sell a futures contract (i.e. bear the contract responsibility to sell in the future), he is said to be short or short on the futures<

2. The origin of contract
futures contract refers to the standardized contract formulated by the futures exchange to deliver a certain quantity and quality of goods at a specific time and place in the future. It is the object of futures trading. The participants of futures trading transfer the price risk and obtain the risk return by trading futures contracts in futures exchanges
futures contract is developed on the basis of spot contract and spot forward contract, but the most essential difference between them is the standardization of futures contract terms. In the futures market, the quantity, quality grade and delivery grade of the subject matter, the premium standard of substitutes, delivery place and delivery month of the futures contract are standardized, which makes the futures contract universal
in the futures contract, only the futures price is the only variable, so the open bidding is generated in the trading

3. Contract classification
digital currency contract can be divided into delivery contract and perpetual contract
(1) delivery contract: futures delivery refers to the process in which the trading parties settle the e open position contract by transferring the ownership of the commodity contained in the futures contract when the futures contract expires
(2) perpetual contract: it is a kind of derivative similar to leveraged spot transaction, and it is a digital currency contract proct settled in BTC, usdt and other currencies. Investors can buy long to get the income of the rising price of digital currency, or sell short to get the income of the falling price of digital currency
there are some differences between perpetual contracts and traditional futures: they have no expiration time, so there is no limit on the holding time. In order to keep track of the underlying price index, the perpetual contract ensures that its price closely follows the price of the underlying asset through the mechanism of capital cost.

4. Digital currency contract is the deformation of traditional futures contract. The unified risk includes the need for margin and the risk of position explosion. Moreover, the digital currency contract is worse than the traditional futures in that it can not be delivered in kind, which means that once it goes in the opposite direction of placing an order and breaks the minimum margin ratio, it must be forced to close the position. There is no other way to increase the risk. At present, some exchanges, such as bitoffer, have launched bitcoin option procts, which can amplify profits without the risk of position explosion.

5. The contract risk is very big, this thing fluctuates greatly, your mentality will be affected, had better not touch
the options are better, and they haven't burst
bitcoin options pushed by bitoffer< The difference between bitcoin spot and option is as follows:

1. For spot, it costs US $10000 to buy a bitcoin
2. For option, it costs US $5 at least to buy a bitcoin option

bitcoin rises from 10000 to US $10500
spot earns us $500, while option earns us $500
both have the same benefits, but the cost difference is 2000 times

6.

It's not a total loss. Closing a position means that when the money in the stock account is lower than a certain value, these stocks do not belong to themselves. The securities dealers are forced to sell them to ensure the safety of their funds and interest

when the company's stock price falls sharply, equity pledge will have the risk of closing positions. In turn, it will aggravate the decline of stock price. If it is forced to close out, the company's controlling interest may change. But if shareholders make margin calls, nothing will happen

extended information:

compulsory position closing of stocks may cause all losses. Generally, compulsory position closing may only be carried out when the position line of investors is lower than the required position closing line of securities companies. Closing line = investor's total assets / liabilities x 100%

for example, if an investor has 1 million financial capital to buy a stock, then his position line = 200 / 100x100% = 200%. Generally, the position closing line of securities companies is about 120%. When the stock price falls, the investor needs to add margin when his position line is lower than the position closing line, otherwise he will be closed

7. There are two kinds of closing positions: hedging closing and compulsory closing. Hedging closing is like "free love", which is a completely autonomous behavior of investors. When the market trend is in line with expectations, investors can choose to sell the bullish contracts they have bought, and make profits through "buy low and sell high", or buy the bearish contracts they have sold, and "sell high and buy low" to earn the price difference, When the market trend does not conform to investors' expectations, timely closing positions can also effectively stop losses. In contrast, compulsory position closing is just like "arranged marriage", which is a kind of compulsory behavior. When the investors' losses are too large, resulting in insufficient trading margin, whether you want to or not, futures companies and other institutions will enforce position closing, while futures trading adopts leverage trading system, so investors can play with large transactions with small amount of funds. Once they encounter "forced position closing", they will be forced to close positions, Under the amplification effect of leverage, investors are likely to suffer heavy losses. It is a compulsory course for investors to build and close positions. When building or closing positions, they should not only grasp the opportunity and have the courage to take action, but also know how to control the risk. They should not blindly follow suit. Especially in the event of losses, investors should pay attention to the losses at any time to avoid being "forced to close". If it is forced to level, then the loss is not just the margin
for example (the contract price and margin ratio are fictitious for convenience of calculation)
the current price of a contract is 2000 yuan per ton, the contract is 10 tons per hand, the margin ratio of the exchange is 5%, and the margin of the futures company is 10 yuan per hand plus 5% handling charge on the basis of the exchange
to buy a hand, you need a deposit of 2000 yuan × ten × 5% + 5%) = 2000 yuan
an investor's account just has 3010 yuan, which is an empty order at the contract price of 2000 yuan. Now, after decting the service charge, the customer's account equity is 3000 yuan, the margin is 2000 yuan, the exchange margin is 1000 yuan, and the available capital is 1000 yuan
what happens when the market goes up to 2100? Current position loss = (2100-2000) × 10 = 1000 yuan, customer account equity = opening account equity - loss = 3000-1000 = 2000 yuan, position occupied margin = 2100 yuan × ten × 5% + 5%) = 2100 yuan, available funds = account equity - margin for position occupation = 2000-2100 yuan = - 100 yuan. At this time, although the customer's account has 2000 yuan, it can't pay any more. This is not the worst because the exchange margin is 2100 × ten × 5% = 1050 yuan, the customer's account equity can cover the margin of the exchange, and will not be forced to close positions
what happens when the market goes up to 2200? Current position loss = (2200-2000) × 10 = 2000 yuan, customer account equity = opening account equity - loss = 3000 - 2000 = 1000 yuan, position occupied margin = 2200 yuan × ten × 5% + 5%) = 2200 yuan, available funds = account equity - margin for position occupation = 1000-2200 = - 1200 yuan. A terrible moment has come, because the exchange margin is 2200 × ten × 5% = 1100 yuan, the customer's account equity is no longer enough to cover the margin of the exchange, so the futures company forced to close the position, dected the closing fees, and the final balance of the account = Customer Equity - fees = 1000-10 = 990 yuan
let's simulate the extreme market. Starting from 2100, the trading board was opened for two consecutive days, and the trading board was still open for the third day. The market rose to 2310, and the futures company had no way to level off before that. Current position loss = (2310-2000) × 10 = 3100 yuan, customer's account equity = opening account equity - loss = 3000-3100 yuan = - 100 yuan, position occupied margin = 2310 yuan × ten × 5% + 5%) = 2310 yuan, available funds = account equity - margin for position occupation = - 100-2310 yuan = - 2410 yuan. No matter how much margin there is in the exchange, the loss of position has eaten up all the funds of investors, so we have to turn to the exchange, which is called position explosion. At this time, the company will be forced to level out = account equity - handling fee = - 100-10 = - 110 yuan. That is to say, after closing the position, not only the gross is not left, but also the additional income of 110 yuan, otherwise it will affect personal credit.