What does virtual currency burst mean

How do you define gambling? If it's legal, investing in bitcoin is not a gamble. Investing in bitcoin is as legal as investing in stocks and futures, and the price of bitcoin is no longer as crazy as it was a few years ago. Just pay attention to the risk when speculating

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

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

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

extended data

there are generally several cases of position explosion:

1. Frequent heavy position operation: in this case, it is generally caused by the trader's eagerness for quick success and instant benefit. Can take light warehouse operation, many times a small amount of risk sharing, this can effectively avoid burst

3. No stop loss: no stop loss point is set before trading or no strict stop loss operation is carried out in the process of trading. This is also a platitude, its importance is self-evident. You can also combine stop loss with position management and use technical conditions to stop loss

4. Frequent trading: if you think you want to make a profit or win back the loss, you can operate at will when you see the possible trading opportunities. In this way, the probability of crisis is greatly increased, and the possibility of position explosion has been increasing

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

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

extended information:

burst refers to the negative equity of the account, which means that the margin is not only completely lost, but also owed. Under normal circumstances, under the day-to-day liquidation system and compulsory position closing system, position explosion will not occur. However, in some special cases, such as short jump in the market, the account with more positions and reverse direction is likely to burst

in case of position explosion, investors need to make up the deficit, otherwise they will face legal recourse. In order to avoid this situation, we need to control the position and avoid full position operation like stock trading. And the timely tracking of the market, not like a stock transaction to buy it. Therefore, futures is not suitable for any investors