What is the meaning of Ethereum burst

1. 1. Burst: burst is a loss greater than the margin in your account. After the company is forced to level, the remaining capital is the total capital minus your loss, and generally there is still a part left< There are two cases of futures 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, The margin on the account can no longer maintain the original contract. This kind of margin "return to zero" caused by forced position closing e to insufficient margin is commonly known as "position explosion", and the meaning of "position penetration" is the same as "position explosion"
at present, the phenomenon of position explosion is basically not allowed in China. There is a limit on the rise and fall in China. When the margin is kept below, futures companies will automatically close their positions. Among the Hang Seng Index Futures in Hong Kong, the Hang Seng index is a 4-hour trading system. The next day, there may be a large short jump or high jump, which will lead to the reversal of the position. As soon as the market opens, the position will explode, or even be negative. A negative number is the money owed to the futures trading company because the futures brokerage company pasted the money to the futures exchange to close the customer's position. For example 1: data example 4: before the opening of trading on August 11, the customer did not give the margin that should be added to the futures company, and the stock index futures contract in September fell by 90 points, opened at 1060 points and continued to fall. The futures brokerage company forced the closing of 15 long positions of the client, with the transaction price of 1055 points

3. Foreign exchange position explosion: foreign exchange position explosion refers to the situation in which the customer's equity in the investor's margin account is negative under some special conditions. When the market changes greatly, if most of the funds in the margin account of investors are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to burst e to the leverage effect of margin trading. If the burst leads to a deficit and is caused by investors, investors need to make up the deficit, otherwise they will face legal recourse.

2.

Borrow money to buy bitcoin, when the price falls to the principal and the borrowed bitcoin is only enough to repay the borrowed money, the bitcoin burst

position explosion refers to the situation in which the customer's rights and interests in the investor's margin account are negative under some special conditions. Burst is back to the loss is greater than the margin in your account. After the company's strong level, the remaining capital is the total capital minus your loss, generally the remaining part

the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system

Unlike all currencies,

bitcoin does not rely on a specific monetary institution. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation

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. The burst of futures refers to that after the futures traders close their positions, they reach: floating profit and loss of account & gt= Total account funds. That is customer equity & lt= 0. Because the market changes too fast, futures traders fail to add margin in time when losses occur, and the margin on the account can no longer maintain the original contract; Return to zero & quot; It is commonly known as burst position.
refers to the floating profit and loss of an account after a futures trader closes his position= Total account capital, that is, customer equity & lt= 0. Because the market changes too fast, futures traders fail to add margin in time when losses occur, and the margin on the account can no longer maintain the original contract; Return to zero & quot; Commonly known as: burst warehouse

5.

Position explosion refers to the situation that the client's equity in the margin account of investors is negative under some special conditions. 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

Close out refers to the behavior of futures investors buying or selling stock index futures contracts with the same variety, quantity and delivery month but opposite trading direction to close the stock index futures transaction

a burst is a loss greater than the margin in your account. After the company is forced to level, the remaining capital is the total capital minus your loss, and generally there is still a part left

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extended information:

reasons for position explosion. If you choose a highly leveraged operation and add a heavy position, you may make more profits in a short time, but in the same way, once you operate carelessly or encounter a relatively volatile market band, you may burst your position in a short time.

2, stubborn

many traders do not close their positions in time at a dangerous time, On the contrary, he took a fluke attitude and knew that there were tigers in the mountains, but he preferred to travel in the mountains. This kind of stubborn attitude is stupid in the foreign exchange market. Trading is just to make money in the foreign exchange market. If it doesn't work this time, it can wait until the next time. This is undoubtedly a waste of money

3, no stop loss

no stop loss point is set before trading, or stop loss operation is not strictly carried out in the process of trading, which may lead to position explosion. The importance of setting stop loss is self-evident. We can combine stop loss with position management and use technical conditions to stop loss

4. Frequent trading

thinking that we want to make profits or win back the losses, we can easily operate when we see the possible trading opportunities, so that the probability of crisis is greatly increased, and the possibility of position explosion has been increasing

generally speaking, it is the wisest way for us to show up firmly after three trading failures

6.

Burst generally refers to forced closing, forced closing is also called forced closing, also known as being cut, cut, burst. It means that under some special conditions, the client's equity in the investor's margin account is negative

a burst is a loss greater than the margin in your account. After the company is forced to level, the remaining capital is the total capital minus your loss, and generally there is still a part left. It is often used in spot gold and futures trading

< H2 > extended information:

burst type:

1. Forced closing e to failure to fulfill the obligation of margin call. According to the rules of the exchange, the margin system is implemented in futures trading. A certain proportion of margin must be paid for each transaction. When adverse changes occur in the market, that is, when the market reverses and changes in the opposite direction, and when the delivery month comes, members or customers should deposit additional margin according to the trading rules and the agreement of the contract

if the member or client fails to fulfill the obligation of margin call within the required time, the exchange has the right to close the position of the member and the brokerage company has the right to close the position of the client

2. If a member or client violates the trading rules of the exchange, the exchange shall have the right to forcibly close the position in violation of the trading rules. It mainly includes: exceeding the position limit in violation of the position limit; Violating the large account reporting system, failing to make a report or making a false report; To conct futures business for those who are not allowed to enter the market; The brokerage company is engaged in self operated business; Joint manipulation of the market; As well as other illegal activities that must be forced to close positions

3. Forced closing e to temporary changes in policies or trading rules. In the past few years, this situation often occurred, and the trading rules were often modified e to the temporary provisions of policies or regulatory departments, or temporarily could not be implemented normally