What is virtual currency burst

1.

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

2.

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

However, e to personal characteristics, many traders didn't close their positions in time at dangerous times. Instead, they had a fluke attitude and knew that there was a tiger in the mountain and they preferred the tiger in the mountain

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

3. Hello, the original meaning of burst position is that the account equity is negative, which means that the margin is not only completely lost, but also owed. It is suggested to consult the relevant fund managers.

4. 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
prevention method: for three consecutive trading mistakes, we should resolutely stop and do something else
follow orders blindly. There are many friends in the forum who blindly follow others' orders and operate without their own opinions, which leads to the burst of positions
the reasons are as follows: first, they are not confident in themselves and have bad trading habits of listening to news; second, they have blind Master worship. Masters are market forecasters. Due to the uncertainty of speculative market, no one can stably predict every important market turn or market fluctuation, and masters are no exception
prevention method: carefully analyze the operation method and thinking mode of the caller, think about why he is bullish or bearish, why he should open a position at this price, why he should set a stop loss at that position, which aspect is consistent with his own analysis and judgment, which aspect is different, etc., and ask more why and if there are doubts in which aspect, Can follow the post to ask "shoudan", I believe we will get his answer. Once it is found that the direction of the operation of the order shouter is opposite to that of the market operation, we must not blindly believe and worship, but leave the market decisively.

5. What is "burst"? Because the market changes too fast, the margin on the account is not enough to maintain the original contract before investors have time to add margin. This kind of margin "return to zero" caused by forced closing e to insufficient margin is commonly known as "burst"

if investors encounter "burst positions", they will suffer heavy losses. The forced closing of securities or futures positions is regardless of the market at that time.