What is the explosion of digital currency

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.

Burst positions are usually e to poor capital management, of course, investment mentality is part of the reason. Almost all investors who have experienced positions explosion will encounter the same problem. The following are the main reasons for positions explosion

1. Placing the wrong order

because of negligence or technical failure, investors press the wrong key in the transaction, and make mistakes in the trading direction, quantity and price, which may lead to position explosion. This is the most stupid mistake in investment, but it is not rare in the money market

therefore, we must be highly concentrated in trading and not let ourselves fall into this situation. If you blow up your position because of these simple mistakes, your mind may collapse

so please remember, when you place an order, you must pay attention to it

2. Frequent heavy position operation

avoid heavy position or full position transaction. Once the margin occupied by the transaction reaches a certain proportion of account funds, it may exceed the affordability of investors and lead to position explosion

in addition, heavy position will cause certain psychological pressure to investors, once the mentality is unstable, it is more likely to cause trading losses

therefore, it is better for investors to choose light position trading, and the loss and profit are controlled within the acceptable range, so the burst of position will not happen easily

If you are an investor, you should understand the meaning of stop loss. Stop loss is very important in currency trading, which can help investors rece the possibility of loss

if investors don't set a stop loss or don't set a reasonable stop loss, it is easy to burst positions when there is a loss

So investors should remember that stop loss is necessary when placing an order. To make trading investment, we should form the habit of setting stop loss when opening positions. Ignoring stop loss is an important reason for position explosion

after the burst, we also need to adjust our mentality, not to be defeated by a burst. We can improve the trading strategy by timely re offering, finding out the key problems, opening a micro account, concting professional training and so on, and graally find a suitable trading method for ourselves

huicha would like to remind you that you must carefully check the authenticity of the trading platform before you choose an appropriate trading platform