Virtual currency short with bars

1.

Short refers to selling positions, can also be called use, sell a certain type of currency loans, bullish. Do long: do and refer to the multi warehouse, can also be called Lido, also known as multi warehouse. Buy some kind of loan currency and be bearish

Long means that the price will rise after estimation, so buy the contract and sell it at sky high price after the price rises in the future. Net profit. Short selling means that the potential will fall after estimation, so sell the contract and buy the contract at a low price after the price falls in the future. Net profit

2. For hedging: to be long means to evade or wash away the risk of proct cost expansion caused by future price rise, and lock up the cost in advance. Short selling means to evade or wash away the risk of profit rection caused by the price decline in the future, and lock in the profit ahead of time

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burst, under some special conditions, the customer's equity in the investor's margin account is negative. 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 position explosion leads to the deficit and is caused by the investors, the investors need to make up the deficit, otherwise they will face legal recourse. The bigger the leverage is, the closer it is to the burst. We should be cautious when adding any leverage

2.

Leverage is a common financial transaction system, namely margin system

Leverage trading is also called virtual trading and deposit trading. That is to say, investors use their own funds as guarantee to enlarge the financing provided by banks or brokers to carry out foreign exchange transactions, that is, to enlarge the trading funds of investors. The proportion of financing is generally decided by banks or brokers. The larger the proportion of financing is, the less capital customers need to pay

leverage trading operation process:

1. Take BTC / usdt as an example, if the platform supports up to three times leverage

when judging that the price of bitcoin will rise from 10000 usdt to 20000 usdt, if you have 10000 usdt of principal, you can borrow up to 20000 usdt from the platform. Use 30000 usdt to buy 3btc at the price of 10000 usdt and sell it at the price of 20000 usdt, with a profit of 3btc * (20000-10000) = 30000 usdt

2. Take BTC / usdt as an example, if the platform supports up to 3 times leverage

when it is judged that the price of bitcoin will drop from 20000 usdt to 10000 usdt, with a principal of 10000 usdt (0.5btc), you can borrow 1btc from the platform, sell one bitcoin at 20000 usdt, and buy it at 10000 usdt, making a profit of 10000 usdt

if you only trade with your own funds, you can only buy low and sell high, not short

3. Calculation method of leverage lending rate:

from the time of applying for leverage, the interest will be calculated as 24 hours in less than 24 hours, and the loan funds and interest will be returned when the leverage is returned

4, the risk of leverage Trading:

leverage makes use of less capital to realize the possibility of obtaining greater returns. But if the wrong direction of the transaction is judged, the loss will also be enlarged year on year. Therefore, ordinary traders try to avoid the high leverage of heavy trading, to prevent the occurrence of burst positions or even through positions

(1) reasonable use of leverage ratio and control of position

(2) stop profit and loss timely and close positions spontaneously

(3) margin should be added in time to ensure that the ratio of total assets to leverage is greater than 110%

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related functions of leverage Trading:

1. Loan account:

each loan transaction pair corresponds to a loan account. For example, ETH / BTC will correspond to an eth / BTC loan account (including two sub accounts of Eth and BTC)

users can transfer Eth and BTC monetary assets in the transaction account to eth / BTC lending account; Eth / BTC loan account can be applied for loan in two types of currency assets: Eth and BTC

2. Fund transfer:

users can't recharge to the loan account directly for the time being, so they can transfer the funds from the transaction account to the loan account by fund transfer

(1) when the user borrows, the part of the loan account with a risk rate higher than 200% can be transferred out to the transaction account

(2) when the user has no loan, all the available funds in the account can be transferred out to the transaction account

3. Apply for loan:

the user enters the loan management and selects the loan account to apply for loan assets. The amount of digital currency that the user can apply for loan depends on the account principal and platform leverage ratio. The maximum amount of loan that the user can apply for is net asset conversion (BTC) × Multiple - 1) - borrowed assets

for example, if the maximum leverage ratio of the platform is 3 times, the number of digital currencies that users can borrow is 2 times of the principal

3.

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

4. 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.

5. 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 continuously 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 exchanged, it will have only some academic research value

6. Can be short, some time ago the BT currency slump is short

7. You can't short bitcoin without bitcoin.

8. Hello, take BTC / usdt trading pair as an example. If you short, you can apply for more BTCs, sell BTCs at high price, buy BTCs at low price, earn the difference and return them to BTC platform.