Virtual currency leveraged trading burst

1.

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%

extended data

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

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.

After tomorrow, it will take 10 minutes for the ore machine to make on the proction platform, and the maturity time of ore is about an hour. The number of ore can be increased by derusting and cooling or adding engine oil

after tomorrow

4. If you burst the position, you will be forced to clear the position, and the securities companies will not be merciful. They will sell the mortgage transaction varieties in your account directly at the price of the daily limit board until the dection is completed. If it is not enough, they will sell others. Until you sell everything. If it's not enough, ha ha, I'll ask you for debt.

5. In currency leverage transaction, when the risk rate of a currency leverage account is less than or equal to 110%, the system will perform the burst operation and use all the assets in the account to repay the borrowed currency debt.

6. The system will default to the best price for you (the price when the risk rate is 100%).