Digital currency is the key to deleveraging

1.

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 time

4. 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 situation

2. The biggest difference between leveraged trading and spot trading is multiple
how to use leverage
1. Long (buy up)
here, take BTC / usdt leverage trading as an example (usdt vs. US dollar, 1 usdt = US dollar) to introce how to use bitcoin leverage. Assuming that the current price of bitcoin is US $10000, and you predict that the price will rise in the near future, you can choose to be long.
if you have only 10000 usdt principal and the platform is triple leverage, you can borrow another 20000 usdt from the trading platform, so the principal is now 30000 usdt; If it is 5 times leverage, it can borrow 40000 usdt, 10 times leverage is 90000 usdt... And so on
buy three bitcoins with 30000 usdt, sell them when they reach 20000 usdt, and get 60000 US dollars of bitcoin, dect 10000 principal and 20000 loan, and make a profit of 30000 US dollars
if you don't use leverage trading, you can only make a profit of 10000 usdt if you buy a bitcoin at 10000 usdt
of course, if the judgment is wrong, bitcoin will only lose 5000 usdt in currency trading and 15000 usdt in leverage trading
2. Short (buy down)
take BTC / usdt triple leverage trading as an example. At present, the price of bitcoin is 20000 usdt. If you think that the price of bitcoin will drop to 10000 usdt, and you have 10000 usdt in your hand, you can borrow one bitcoin from the platform (short can only borrow the currency you choose to short), and sell it when the price of bitcoin is 20000 usdt, Then, when the bitcoin price is 10000 usdt, buy it back to the platform, and you can make a profit of 10000 usdt
in fact, bitcoin leveraged trading plays a role in amplifying revenue, but it also magnifies risk

there are many digital currency trading platforms, and the main procts promoted by each platform are also different. Some are mainly spot trading, and some are futures trading. Among them, futures trading is contract trading, that is, leverage. The better platforms are coin stations, which can be seen by contract friends.

3. Hello, leverage is a small and broad economic behavior that borrows funds at a certain leverage ratio for investment in the case of insufficient self owned funds
[case]
to buy stocks by financing, assuming that Xiaowang has 100000 yuan of principal for investment, and the profits of Xiaowang's stocks in 2017 are 30%, then Xiaowang's profits are 30000 yuan<

assuming that Xiao Wang borrows 200000 yuan through a certain way of borrowing, in 2017, Xiao Wang invests 300000 yuan in stocks and makes a profit of 30%, then Xiao Wang makes a profit of 90000 yuan, excluding the loan interest of 20000 yuan, and Xiao Wang makes a profit of 70000 yuan. With the help of leverage, Xiao Wang expands the profit from 30% to 70%<

suppose Xiao Wang borrows 200000 yuan from 100000 yuan through a and 600000 yuan from 300000 yuan through B. in 2017, Xiao Wang invests 900000 yuan in stocks and makes a profit of 30%. Then Xiao Wang makes a profit of 270000 yuan. After removing the interest of 80000 yuan, Xiao Wang makes a profit of 190000 yuan. With the help of leverage, Xiao Wang expands the profit from 30% to 190%
deleveraging refers to the process of recing debt by recing leverage ratio or recing leverage, that is to return the money borrowed through various channels<

[case]

assuming that Xiao Wang has 100000 yuan of principal and borrows 200000 yuan from a, and the shares invested by Xiao Wang lose 10%, then Xiao Wang loses 30000 yuan. Xiao Wang worries about continuing to lose money, sells his shares in time, returns the borrowed 20 yuan to a and pays interest. Xiao Wang loses 50000 yuan in total and the remaining 50000 yuan of principal

risk disclosure: this information does not constitute any investment proposal, investors should not use such information to replace their independent judgment or make decisions only based on such information, does not constitute any trading operation, and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.

4. Private paipaipai network answers for you:
deleveraging:
people deposit money in the bank, and the bank will lend it to you. You increase liabilities and the bank increases assets. Similarly, others do the same. Since then, a small amount of money can create a large amount of credit, and finance is so magical
What about deleveraging? That's to let you rece your debt, and the bank also reces its assets. Assets and liabilities are shrinking at the same time. That's why we often listen to the news. The US Federal Reserve is shrinking its balance sheet. That's the principle
why deleveraging
the Federal Reserve has driven the world into the interest rate increase cycle. Although China has not officially increased interest rates, it is obvious that market liquidity has tightened. With less money in the market, cash flow is easy to go wrong. Once these debts are not paid, a large number of bad debts will be devastating to the bank. If the bank goes wrong, it will directly lead to systemic risk. One ring fits the other
in addition, according to the principle of interest rate parity, if the U.S. raises interest rates and China does not raise interest rates, there will be interest rate differentials. In order to arbitrage, capital will sell RMB to buy US dollars, and RMB will depreciate, capital will flow out, eventually leading to the loss of foreign exchange reserves. In the 1997 Asian financial crisis, Thailand and other small countries did not have enough foreign exchange reserves to maintain exchange rate stability, which led to economic collapse
therefore, domestic regulators have taken the form of increasing interest rates in disguised form through open market operation and releasing liquidity appropriately to rece leverage, so as to prevent the economy from hard landing
the answers are reproced from www.simuwang.com

5.

What does deleveraging mean? Generally speaking, deleveraging is to rece debt

What does deleveraging mean? Generally speaking, deleveraging is to rece debt

2. Definition: deleveraging refers to the process of recing leverage in financial institutions or financial markets; Leverage & quot; Refers to & lt; Use less principal to get high returns;. This mode was adopted by many enterprises and institutions before the outbreak of the financial crisis, but it will bring huge risks when the financial crisis breaks out

In fact, the essence of leverage is debt. After borrowing funds and putting them into operation, we can achieve a small (small amount of capital) for a large (larger total assets), so it is vividly called leverage. So as long as there is debt financing, there will be leverage. Our country's financial system is dominated by indirect finance, that is, bank credit, which accounts for the largest proportion of the total amount of social financing, so the leverage in the economy is not small

The key to China's economic deleveraging is to stabilize the debt, curb the excessive rise of personal debt ratio, significantly higher corporate debt and excessive rise of local finance

2; Gross's latest view is that the process of deleveraging in the United States has led to an overall decline in the prices of the country's three major asset classes (stocks, bonds and real estate)

Gross believes that the global financial market is in the process of deleveraging, which will lead to a decline in the prices of most assets, including gold, diamonds and grains& ldquo; We often say that there will always be opportunities somewhere in the market, but I would like to say that now is not the time& rdquo;

6. [economic term]
in economics, leverage can be divided into broad sense and narrow sense, and narrow sense refers to "financial leverage". An enterprise in the case of lack of its own funds, through borrowing to raise funds, put into proction, get more income. It's about doing your own business with other people's money. But this is also a big risk. If the business loses more than the amount of its own funds, it will become insolvent. General enterprises will find a suitable balance point, which can not only make more money, but also ensure controllable risks. The indicator is called "asset liability ratio"
the broad sense of leverage covers all the economic behaviors of "fighting big with small", but the core is still lending. For example, in the futures market, you have a dollar, but the market allows you to place a ten dollar order. If the loss reaches one yuan ring the period, you will be forced to withdraw
leverage in macro-economy is the effect of capital flow multiple. For example, raising and recing interest rates. It seems that the interest rate of 0.1% is very small, but the capital flow is not one-time, but repeated many times, so the utility will be magnified many times. Why do you say that. For example, if Zhang San borrows 100000 yuan from the bank, he may immediately go shopping in the mall, and the mall will deposit the money in the bank in the evening. The bank lent the money to Li Si again. Li Si opened a company. When the money was lent out, it was still in the bank account. The bank's money is still so much, just two more layers of debt
when the government increases or decreases the interest, it will also play a role in the multi-layer lending relationship, which will proce amplification effect
changing the bank reserve ratio is similar
"deleveraging", according to all parties, "deleveraging" is a process in which a company or indivial reces the use of financial leverage. The trend of returning money borrowed in various ways (or tools)
when the capital market is good, the high return brought by this mode makes people ignore the existence of high risk. When the capital market begins to go down, the negative effect of leverage effect begins to highlight, and the risk is rapidly amplified. For the enterprises and institutions that use excessive leverage, the rise of asset prices can make them easily obtain high profits, and once the asset prices fall, the losses will be very huge, exceeding the capital, which will quickly lead to bankruptcy. After the outbreak of the financial crisis, the risk of high "leverage" began to be recognized by more people, and enterprises and institutions began to consider "deleveraging" one after another, recing liabilities by selling assets and other ways, and graally paying back the debt. This process has resulted in the decline of most asset prices, such as stocks, bonds and real estate
the "deleveraging" of a single company or institution will not have much impact on the market and economy. However, if the whole market enters this process, and most institutions and investors are forced to or take the initiative to spit out the money "borrowed" by using leverage method in the past, then the impact is obviously extraordinary
in the period of economic prosperity, the financial market is full of a large number of complex and highly leveraged investment tools. If most institutions and investors join the ranks of "deleveraging", these investment vehicles will be dissolved, and the derivatives market will also face shrinkage, and related instries will be hurt. With the sharp rection of market liquidity, the economic recession will result.

7.

" Deleveraging & quot; It refers to the process of financial institutions or financial markets recing leverage; Leverage & quot; Refers to & quot; Use less principal to get high return & quot

when the capital market is good, the high return brought by the high leverage mode makes people ignore the existence of high risk. When the capital market begins to go down, the negative effect of leverage effect begins to highlight, and the risk is rapidly amplified. For the enterprises and institutions that use excessive leverage, the rise of asset prices can make them easily obtain high profits, and once the asset prices fall, the losses will be very huge, exceeding the capital, which will quickly lead to bankruptcy

after the outbreak of the financial crisis, high & quot; Leverage & quot; More and more people begin to understand the risk of the risk of the risk, enterprises and institutions have begun to consider & quot; Deleveraging;, By selling assets and other ways to rece liabilities, graally repay the debt. This process has resulted in the decline of most asset prices, such as stocks, bonds and real estate

to sum up the views of all parties, & quot; Deleveraging & quot; It is a process in which a company or indivial reces the use of financial leverage. Through various ways (or tools) & quot; Borrow & quot; It's a trend to get money back

< H2 > extended data:

< H2 > & quot; Deleveraging & quot; The latest view of Bill Gross, the king of American bonds, is that the deleveraging process in the United States has led to the overall decline of the prices of the three major asset classes (stocks, bonds and real estate)

Gross believes that the global financial market is in the process of deleveraging, which will lead to a decline in the prices of most assets, including gold, diamonds and grains& quot; We often say that there will always be opportunities somewhere in the market, but I would like to say that now is not the time& quot;

Gross said that once the process of deleveraging, including risk spread, liquidity spread, market volatility level, and even term premium will rise. Asset prices will suffer as a result. Moreover, this process will not be one-way, but will influence and strengthen each other