Leverage of bitcoin contract
Similar to futures contract, it is a trading method proposed by bitstar
the leverage of bitcoin virtual contract is shown as the leverage stability of the revenue level of legal currency: if you invest US $100, the revenue you can get = US $100 * the rise and fall of bitcoin * the fixed leverage ratio
assuming that the current price is 500usd / BTC, an investor can buy a BTC at the current price, and the principal is 500usd. At this time, the investor can make 50 more BTC virtual contracts
at this time, if the price of BTC rises to US $750, or 50%, the investor's contract income is 3.3333 BTCs, which can be sold at the current price to get us $2500, and the income is five times of the principal investment
bitcoin futures provided by bitcoin exchanges are usually traded in bitcoin. Futures is opposite to spot. Spot is a commodity that can be paid and delivered at the same time. In fact, futures is not "goods", but an agreement (contract) - futures contract that promises to deliver "goods" (subject matter) at a future time
extended data:
futures contract is an agreement that the buyer agrees to receive certain assets at a specific price after a specified period of time, and the Seller agrees to deliver certain assets at a specific price after a specified period of time. The price that both parties agree to use in future trading is called futures price
the specified date on which both parties must conct transactions in the future is called settlement date or delivery date. The assets agreed to be exchanged by both parties are called "subject matter". If an investor gains a position in the market by buying a futures contract (i.e. agreeing to buy at a future date), it is called long position or long in futures
On the contrary, if the position obtained by investors is to sell the futures contract (i.e. bear the contract responsibility to sell in the future), they are short positions or short on the futuresthe basis of bitcoin contract
bitcoin contract refers to a contract that can be traded without actually owning bitcoin. It is very different from the currency transaction which can only be carried out with the actual holding of digital currency
bitcoin contracts enable you to predict the price trend of bitcoin and hedge risks. This way of trading means that you are investing in price trends, not the assets themselves
when trading bitcoin contracts, you can decide whether to be short or long. Choosing long means that you expect the price of bitcoin to rise. On the other hand, choosing to short means that you expect prices to fall
leveraged trading
one of the characteristics of bitcoin contracts is that it can choose to trade with high leverage ratio. Using leverage means that you don't have to invest 100% of the transaction amount in a contract transaction. Instead, you only need to deposit the initial margin, which is only a small part of the total contract value
leveraged trading allows you to have a large exposure with a small amount of funds while managing risks
perpetual contracts
although there are many different types of contracts, this paper mainly focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who are long or short with perpetual contracts can hold positions indefinitely unless the contract bursts, which means that they will not suffer more losses than the initial margin
in the perpetual contract, the pricing of bitcoin is based on a specific index price. The index price is based on the average price of bitcoin in multiple currency markets
bitcoin contract has become a very popular trading tool. Many traditional investors are not ready to allocate their money to digital assets, but still want to benefit from attractive price fluctuations, and contract trading opens the door for them
if you want to open bitcoin contract trading, you need to find the exchange that provides contract trading. AAX platform provides you with bitcoin contract trading services in a compliant and secure environment
close position refers to the behavior that futures traders buy or sell futures contracts with the same variety, quantity and delivery month as their futures contracts, but with opposite trading direction, and close the futures transaction. In short, it means "sell as you buy, buy as you sell"
in fact, many people in the currency circle are against the digital currency leverage trading, but they have nothing to do. In addition to bitcoin and Leyte, other digital currencies have no leverage business. Other excellent digital currencies include Ruitai, Ruibo, bitstocks, gold cards, etc.
in addition, CPU is not good at parallel computing at all. It can perform more than ten tasks at most at one time. This is far from the fact that the graphics card has thousands of stream processors. The graphics card is too high, so we slowly develop the corresponding mining algorithm for the graphics card
taking BTC as an example, its basic algorithm principle is to take all transactions within 10 minutes as an input and add a random number. When all transactions within 10 minutes are added with your random number, a hash of sha256 is calculated. It's almost full of integer operations. It's just like a special design for a graphics card. The graphics card is very suitable for this kind of brainless algorithm. The more the number of stream processors, the better
as far as hash computing is concerned, it is almost all independent and concurrent integer computing, and GPU is designed and proced for this. Compared with the pitiful 2-8 threads of CPU and the astonishing length of control judgment and scheling branches, GPU can easily perform integer calculation concurrency of hundreds of threads (brainless brute force cracking without any judgment is the strength of a card)
OpenCL can make use of a large number of unified shaders on GPU chip, which can be used as resources for integer calculation. The resource of stream processor of a card is several times that of N card (the same level card)
but later, we found that the graphics card is still too weak, and the computing power can be greatly improved by directly using the ALU unit of large-scale ASIC stack. The computing power of the palm sized computing board is dozens of times that of the graphics card, so now bitcoin can't dig without a special ASIC miner
although a large number of interdependent and random memory access instructions are introced into the script algorithm used in the later LTC, when the footprint is large enough, a large number of cache failures will occur at the L2 level or even TLB level of GPU, resulting in more DRAM accesses, so as to weaken the advantage of ASIC / FPGA in integer operation performance compared with GPU, However, it is still targeted to develop mining machines. At present, only specialized mining machines can dig
however, the second generation of virtual currency (such as Eth and Zec) has absorbed the experience of the predecessors' blasted algorithms, and made more special optimization on the mining algorithm to prevent the occurrence of brainless operations. It has high requirements for video memory, so it can effectively resist the invasion of mining machines
because eth can only rely on graphics cards for mining, the rising price and shortage of graphics cards started in the second half of 2017. Many mine owners sold thousands of graphics cards to set up mining machines to mine these virtual currencies
over time, we all think that CPU can't mine, but in fact, the efficiency and benefit are too low.
leverage trading, also known as margin trading. As the name suggests, it is to use small amount of funds to invest several times the original amount in order to obtain multiple returns or losses relative to the fluctuation of the investment object. Different transaction leverage ratios are different. For example, futures generally have 10 times leverage, that is to say, if the market price changes in the opposite direction of your expectation, 10% of your investment (margin) will lose 100%, and if the market changes in the same direction as your expectation, the return will be 100%. If it is 100 times leverage trading, the market price changes by 10%, and the return or loss of investment will reach 1000%. As the increase or decrease of margin (the small amount of funds) does not move according to the fluctuation ratio of the underlying assets, the risk is very high
foreign exchange margin trading refers to signing a contract with (designated investment) bank, opening a trust investment account, depositing a sum of funds (margin) as guarantee, and setting a credit operation limit (i.e. 20-400 times leverage effect) by (investment) Bank (or brokerage bank). Investors can freely buy and sell spot foreign exchange of the same value within the limit, and the profits and losses caused by the operation will be automatically dected from or deposited in the above investment account. So that small investors can make use of smaller funds, get a larger amount of trading, and enjoy the use of foreign exchange transactions as global capital to avoid risks, and create profit opportunities in exchange rate changes
for foreign exchange leveraged transaction, the leverage ratio is between 20 times and 400 times, and the standard contract in the foreign exchange market is RMB 100000 per hand (which refers to the base currency, that is, the currency before the currency pair). If the leverage ratio provided by the broker is 20 times, the margin of RMB 5000 per hand (if the currency of the transaction is different from the gold coin of the account guarantee, it needs to be converted); If the leverage ratio is 100 times, a margin of 1000 yuan is required for the transaction.