What does bitcoin contract leverage mean

1.

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 futures

2.

the 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

3. The leverage of the virtual contract is shown as the leverage stability of the revenue level of the legal currency: if you invest US $100, the revenue you can get is 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. ZB fire coin, coin an

4. In the case of bitcoin option, that is to say, you can only get the right after the goal is achieved. In the case of delivery contract, it is different. The delivery contract means that the value has been determined.

5.

With the steady rise of China's comprehensive strength, more and more attention has been paid to the mastery and guidance of core technologies. Under the background of mobile Internet, many Chinese enterprises have begun to transfer to the core technology level, such as Xiaomi's surging processor, Huawei's Kirin processor, and Huawei's 5g network system, Today, I will focus on the 5g network system developed by Huawei to tell you how much impact this will have on Chinese and domestic users in the future

The final development form of 5g is to enter the era of interconnection of all things, and the "city brain" project, which Ali focuses on, will also spread rapidly. Many scenes in the city, even large public places such as schools, hospitals, factories and theatres, can be operated through cloud technology, Let 5g network applications throughout every corner of life. Smart home is no longer a segment of a science fiction movie, but a way of life. The technology of automatic driving and remote cooperative operation of smart car will also usher in great development, and VR / AR will not be limited by the current scientific and technological power, thus making great progress

when we finish talking about the impact of 5g on our domestic users, and the impact of Huawei's research and development of 5g network on China, it will not be good for China if either of Europe and the United States dominates the communication field. 5g's influence is obvious all over the world. Therefore, it has become the standard of 5g standard. By customizing new market rules, China's influence in the global scope will be further enhanced. In addition to collecting patent fees to obtain benefits, it can also control the focus of global communication field. This is not only the progress of science and technology, but also a symbol of the comprehensive strength of countries in the world

6. Check whether your own number is registered as digital currency by others
generally speaking, you need professional knowledge to tell you

7. Now there are still many such platforms

8. The contract can be completed directly on the bitcoin trading platform, and the leverage is the contract. But the trading platform must be well chosen, such as fire coin and coin station, which are more suitable, mainly because bitcoin contract is the main promotion of the platform. In this way, most of the time, the activities of the platform are about contract users, and then if you are on it, you can enjoy the corresponding benefits.

9. Perpetual contract is a new type of contract, which is evolved from the traditional futures contract. But compared with futures contracts, perpetual contracts have no maturity or settlement date, which is more like a margin spot market. Therefore, its trading price is close to the reference index price. Because perpetual contracts have no delivery date, they are more suitable for long-term positions. That is to say, as long as you open a position, as long as you are not forced to close a position, you will never be forced to close a position. As long as your order is not withdrawn voluntarily, it will be kept forever until the transaction is concluded. However, the absence of a delivery date means that there is no mandatory constraint on the price of the perpetual contract, which will become a gambling tool. In order to avoid this situation, the perpetual contract has the following provisions:
1. At a certain time, when the futures price is greater than and significantly deviates from the spot price, the bull needs to pay the short side
2. At a certain time, when the futures price is less than or significantly deviates from the spot price, the short side needs to pay the multi-party
3. The greater the deviation, the higher the rate of payment
through the setting of this cost mechanism, the perpetual contract price can anchor the spot price and limit the malicious manipulation of the contract price as much as possible. However, this mechanism is not activated in the whole trading time. Generally, we choose to set several time points in a day, and detect them when they arrive. If the price gap deviates too much and is still in the position, the mechanism will be activated
warm tips: the above contents are for reference only

response time: April 23, 2021. Please refer to the official website of Ping An Bank for the latest business changes
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