Bitcoin position and closing
1. Open a position and build it. In the transaction, there are usually two ways of operation, one is bullish market to do long (buyer), the other is bearish market to do short (seller). Whether long or short, placing an order is called & quot; Opening & quot;. Can also be understood as in the transaction, whether it is to buy or sell, all new positions are called open positions
2. Closing out refers to the transaction behavior of one party of futures trading in order to cancel the previously bought or sold futures contracts. Position closing is a general term for the behavior of long sellers selling their stocks or short sellers buying back their stocks in stock trading
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extended data:
closing position classification
closing position can be divided into hedging closing position and compulsory closing position
1
Compulsory position closing refers to a third party (futures exchange or futures brokerage company, such as Fuhui global gold exchange trading platform) other than the position holder forcibly closing the position of the position holderthere are many reasons for forced position closing in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions, temporary changes in policies or trading rules, etc. In the standard futures market, the most common one is forced closing e to insufficient margin
specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to increase the corresponding margin or rece the position in time according to the notice of the futures company, and the market is still developing in the direction of unfavorable position, the futures company will forcibly close part or all of the customer's position in order to avoid the loss expansion, The act of filling the margin gap with the funds obtained
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.
burst: usually after overdraft investment, the loss exceeds the self owned funds
there are two cases of position explosion. One is that the futures customer still owes money to the futures exchange after closing the position, that is, the floating profit and loss of the account is equal to or greater than the total capital of the account, that is, the customer's equity is less than or equal to 0
because the market changes too fast, the margin on the account can no longer maintain the original contract before the investor has time to add margin, This kind of margin "return to zero" caused by forced closing e to insufficient margin is commonly known as "burst", and the meaning of "through" is the same as "burst"
close out refers to the behavior of a futures trader to buy or sell a futures contract with the same variety, quantity and delivery month as his futures contract, but in the opposite direction, and close out the futures transaction. In short, it means "sell what he originally bought, and buy what he originally sold (short)"<
classification of position closing:
Hedging:
hedging position closing refers to futures investment enterprises buying and selling futures contracts in the same delivery month in the same futures exchange to settle the futures contracts previously sold or bought
compulsory:
compulsory position closing refers to a third party (futures exchange or futures brokerage company) other than the position holder forcibly closing the position of the position holder, also known as being cut off or cut off
there are many reasons for forced position closing in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions, temporary changes in policies or trading rules, etc. In the standard futures market, the most common one is forced closing e to insufficient margin
specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to increase the corresponding margin or rece the position in time according to the notice of the futures company, and the market is still developing in the direction of unfavorable position, the futures company forcibly closes part or all of the customer's position in order to avoid loss expansion, The act of filling the margin gap with the funds obtained.
1. Open a position and build it. In the transaction, there are usually two ways of operation, one is bullish market to do long (buyer), the other is bearish market to do short (seller). Whether long or short, placing an order is called & quot; Opening & quot;. Can also be understood as in the transaction, whether it is to buy or sell, all new positions are called open positions
Before the maturity of physical delivery or cash delivery, investors can voluntarily decide to buy or sell futures contracts according to market conditions and personal wishesIf an investor (long or short) does not perform the reverse operation (sell or buy) with the same delivery month and quantity and holds a futures contract, it is called "position". In the operation of gold and other commodity futures, whether buying or selling, all new positions are called Jiancang. After the operator builds a position, he holds a position in his hand, which is called position
(3) position closing is a general term for the behavior of long sellers selling the stocks they bought or short sellers buying back the stocks they sold in stock trading. The purpose of long selling stocks and short buying stocks is to earn profit from price difference. It is very important to realize profit from price difference or avoid losses when the market reversesposition closing is a term originated from commodity futures trading, which refers to the transaction behavior of one party of futures trading in order to cancel the previously bought or sold futures contracts
extended data:
open position, open position and close position are all terms in futures trading. The characteristics of futures trading are as follows:
1, contract standardization
futures trading is carried out through trading futures contracts, while futures contracts are standardized. Standardization of futures contract means that all terms of futures contract are prescribed by futures exchange in advance except price, which has the characteristics of standardization. The standardization of futures contracts brings great convenience to futures trading. The two sides of the transaction do not need to negotiate the specific terms of the transaction, so as to save transaction time and rece transaction disputes
2. Trading centralization
futures trading must be carried out in the futures exchange. The futures exchange implements the membership system, and only members can enter the market for trading. If those customers who are outside the market want to participate in the futures trading, they can only entrust the futures brokerage company to trade. Therefore, the futures market is a highly organized market, and the implementation of a strict management system, the final completion of futures trading in the futures exchange
Two way trading and hedging mechanism, that is, futures traders can either buy futures contracts as the beginning of Futures Trading (called buying Jiancang), or sell futures contracts as the beginning of Trading (called selling Jiancang), which is commonly known as "short selling"hedging mechanism is also related to the characteristics of two-way trading. In most futures trading, it is not through physical delivery when the contract expires to fulfill the contract, but through transactions in the opposite direction of the transaction when the position is established to release the responsibility of performance
specifically speaking, after buying a position, the performance responsibility can be relieved by selling the same contract, and after selling a position, the performance responsibility can be relieved by buying the same contract
the characteristics of two-way trading and hedging mechanism of futures trading attract a large number of futures speculators to participate in the trading, because in the futures market, speculators have double profit opportunities. When the futures price rises, they can buy low and sell high to make profits. When the price falls, they can sell high and buy low to make profits. Moreover, speculators can avoid the trouble of physical delivery through hedging mechanism, The participation of speculators greatly increases the liquidity of futures market
In other words, traders only need to pay a small amount of margin, which is generally 5% - 10% of the contract value, to complete several times or even dozens of times of the contract transaction. This feature of futures transaction has attracted a large number of speculators to participate in futures transactionfutures trading has the characteristics that it can make a large amount of investment with a small amount of funds, which is vividly called "leverage mechanism". The leverage mechanism of futures trading makes futures trading have the characteristics of high yield and high risk
Daily non liability settlement system, also known as daily mark to market system, refers to that after the end of daily trading, the exchange settles the profit and loss, trading margin, handling charges, taxes and other expenses of all contracts according to the settlement price of each contract on that day, transfers the net amount of receivables and payable at one time, and correspondingly increases or decreases the settlement reserve of members. Brokerage members are responsible for settling accounts with customers in the same waythe content of this article comes from the series of general knowledge of legal life published by China Law Press
the options are better, and they haven't burst
bitcoin options pushed by bitoffer< The difference between bitcoin spot and option is as follows:
1. For spot, it costs US $10000 to buy a bitcoin
2. For option, it costs US $5 at least to buy a bitcoin option
bitcoin rises from 10000 to US $10500
spot earns us $500, while option earns us $500
both have the same benefits, but the cost difference is 2000 times
before the maturity of physical delivery or cash delivery, investors can voluntarily decide to buy or sell futures contracts according to market conditions and personal wishes. If an investor (long or short) does not carry out the reverse operation (sell or buy) with the same delivery month and quantity and holds a futures contract, it is called "position". In the operation of gold and other commodity futures, whether buying or selling, all new positions are called Jiancang. After the operator builds a position, he holds a position in his hand, which is called position. In futures trading, whether buying or selling, all new positions are called open positions. After a trader builds a position, he holds a position in his hand, which is called a position
position closing refers to the behavior of futures investors buying or selling stock index futures contracts with the same variety, quantity and delivery month but opposite trading direction, so as to close stock index futures trading. It can also be understood as: closing a position refers to the transaction behavior of a trader to close a position, and the way to close a position is to hedge against the direction of the position.