How to short digital currency
Now the popular digital currency futures is bitcoin futures. On December 11, 2017, Beijing time, CBOE launched the bitcoin futures XBT, and the market reaction was hot, triggering the circuit breaker mechanism many times. CME of Chicago Mercantile Exchange launched bitcoin futures BTC on December 18, 2017, which brought about great fluctuation
the two major bitcoin futures procts have the following similarities and differences, which are worth noting:
1. XBT unit is 1 bitcoin, BTC is 5 bitcoins
The minimum price change: XBT is $10 / bitcoin, BTC is $5 / bitcoin XBT trading time is from 7:00 on Monday to 6:00 on Saturday, Beijing time; BCT trading time is from 7:00 on Monday to 4:15 on Saturday, Beijing time4. The position limit was 5000
Price circuit breaker mechanism: XBT price fluctuates more than 10% of the previous day's closing price, trading is suspended for 2 minutes, more than 20%, trading is suspended for 5 minutes; The BTC price fluctuates more than 7% or 13% of the closing price of the previous day, triggering the circuit breaker mechanism. The specific suspension time has not been disclosed. If it exceeds 20%, the trading will stop XBT requires 44% initial margin, which is about 2 times leverage; BTC Requires 35% of the initial margin, which is about 3 times the leverage. It is worth noting that both exchanges have indicated that the margin amount can be adjusted according to the actual situationshorting is an investment term for stocks and futures, and an operation mode of stock and futures markets. And "long" is the opposite, in theory is to borrow goods to sell, and then buy return. Short selling refers to the expectation that the future market will fall, sell the stocks according to the current price, and buy them after the market falls, so as to obtain the profit margin. Its trading behavior is characterized by selling before buying. In fact, it's a bit like the credit trading mode in business. This mode can make profits in the band where the price falls, that is, first borrow and sell at a high level, and then buy and return after the price falls. For example, if a stock is expected to fall in the future, it will be sold by borrowing the stock when the current price is high (the actual transaction is to buy a bearish contract), and then it will be bought when the stock price falls to a certain extent, and it will be returned to the seller at the current price. The price difference is profit.
Token Network Forum provides: if you want to short, you also need to have the corresponding capital. At present, as a new player, it is difficult to buy a large number of bitcoin. And because most people are in the holding state, it is difficult to make bitcoin circulate with each other
buy a lot of bitcoin and let it continue to buy high and sell low. If you can hold on, bitcoin may be short
as long as you can continue to spread the shortcomings of bitcoin and rece the number of people who hold bitcoin, it will basically affect the operation of the exchange. If bitcoin can't be traded in circulation, there will be only some learning
the principle of bitcoin shorting:
this shorting is to convert your money into more bitcoins. However, in order to make money, after you get more bitcoins, you can only make money if bitcoin rises. Like China's stock market, there is a reason to increase positions when it falls. But what I want to tell you is that short selling can't make money
different from the short principle of spot market, the short principle of spot market can make money when it falls, and the position in hand is unchanged. But bitcoin changes your position. In the same way, China's stock market falls more and more, sharing the cost of building positions equally, and then waiting to rise
after understanding the principle of bitcoin shorting, we get the answer: in short, this kind of shorting is actually false
short selling to build a position refers to selling a position, which can also be called short interest, selling a certain currency and being bearish. Some people call it long or short. Short selling mechanism is to borrow other people's shares to sell in advance when the market is going to fall at a high level, and then buy them back at a low level and return them to the borrower to close the position to make a profit. It is the reverse operation of the current buying stock to make a profit by rising. Because it makes a profit by falling, it will attract a large number of funds to short in the bear market.
this shorting is just to convert your money into more bitcoins. However, in order to make money, you can only make money when you get more bitcoins. Like China's stock market, there is a reason to increase positions when it falls. But what I want to tell you is that short selling can't make money
unlike the short selling principle of spot market, short selling in spot market can make money when it falls, and the position in hand is unchanged. But bitcoin changes your position. In the same way, China's stock market falls more and more, sharing the cost of building positions equally, and then waiting to rise
after understanding the principle of bitcoin shorting, we can get the answer: in short, this kind of shorting is actually false.
the operator will sell the chips at the market price and buy them after the stock futures fall to earn the middle price difference shorting is an operation mode of financial assets. Shorting is to borrow the underlying assets first, sell them to get cash, and then spend cash to buy the underlying assets and return them after a period of time. Shorting is a common operation mode in the stock futures market. The operation is to expect that the stock futures market will have a downward trend. The operator will sell the chips according to the market price, and then buy them after the stock futures fall to earn the middle price difference if investors want to short sell securities, they need to arrange to borrow the securities for settlement. Investors need to deposit enough margin as collateral, pay interest to the lender and pay the dividend to the lender when they receive it. When a lender lends shares, it loses its voting rights extended information: related content of short trading: 1. Use futures market to carry out hedging trading, so as to rece the risk caused by price fluctuation and ensure the normal profit of proction and operation. The people who do this kind of hedging are procers, traders, practical users, etc 2. An institution or indivial that makes use of the unreasonable price relationship between the stock index futures market and the stock market, as well as between different markets, varieties and periods of stock index futures, and makes profit by buying and selling at the same time