Currency leverage
lightcoin is inspired by bitcoin (BTC) and has the same implementation principle in technology. The creation and transfer of lightcoin is based on an open source encryption protocol and is not managed by any central authority. Lightcoin aims to improve bitcoin. Compared with bitcoin, lightcoin has three significant differences. First, the lightcoin network can process a block every 2.5 minutes (instead of 10 minutes), so it can provide faster transaction confirmation. Second, the lightcoin network is expected to proce 84 million lightcoins, four times the amount of money issued by bitcoin network. Thirdly, the scrypt encryption algorithm first proposed by Colin Percival is used in lightcoin's workload proof algorithm, which makes it easier to mine lightcoin on ordinary computer than bitcoin. Each Leyte is divided into 100000000 smaller units, defined by eight decimal places.
Leverage is a common financial transaction system, namely margin system
Leverage trading is also called virtual trading and deposit trading. That is to say, investors use their own funds as guarantee to enlarge the financing provided by banks or brokers to carry out foreign exchange transactions, that is, to enlarge the trading funds of investors. The proportion of financing is generally decided by banks or brokers. The larger the proportion of financing is, the less capital customers need to pay
leverage trading operation process:
1. Take BTC / usdt as an example, if the platform supports up to three times leverage
when judging that the price of bitcoin will rise from 10000 usdt to 20000 usdt, if you have 10000 usdt of principal, you can borrow up to 20000 usdt from the platform. Use 30000 usdt to buy 3btc at the price of 10000 usdt and sell it at the price of 20000 usdt, with a profit of 3btc * (20000-10000) = 30000 usdt
2. Take BTC / usdt as an example, if the platform supports up to 3 times leverage
when it is judged that the price of bitcoin will drop from 20000 usdt to 10000 usdt, with a principal of 10000 usdt (0.5btc), you can borrow 1btc from the platform, sell one bitcoin at 20000 usdt, and buy it at 10000 usdt, making a profit of 10000 usdt
if you only trade with your own funds, you can only buy low and sell high, not short
3. Calculation method of leverage lending rate:
from the time of applying for leverage, the interest will be calculated as 24 hours in less than 24 hours, and the loan funds and interest will be returned when the leverage is returned
4, the risk of leverage Trading:
leverage makes use of less capital to realize the possibility of obtaining greater returns. But if the wrong direction of the transaction is judged, the loss will also be enlarged year on year. Therefore, ordinary traders try to avoid the high leverage of heavy trading, to prevent the occurrence of burst positions or even through positions
(1) reasonable use of leverage ratio and control of position (2) stop profit and loss timely and close positions spontaneously (3) margin should be added in time to ensure that the ratio of total assets to leverage is greater than 110%extended data
related functions of leverage Trading:
1. Loan account:
each loan transaction pair corresponds to a loan account. For example, ETH / BTC will correspond to an eth / BTC loan account (including two sub accounts of Eth and BTC)
users can transfer Eth and BTC monetary assets in the transaction account to eth / BTC lending account; Eth / BTC loan account can be applied for loan in two types of currency assets: Eth and BTC
2. Fund transfer:
users can't recharge to the loan account directly for the time being, so they can transfer the funds from the transaction account to the loan account by fund transfer
(1) when the user borrows, the part of the loan account with a risk rate higher than 200% can be transferred out to the transaction account
(2) when the user has no loan, all the available funds in the account can be transferred out to the transaction account
3. Apply for loan:
the user enters the loan management and selects the loan account to apply for loan assets. The amount of digital currency that the user can apply for loan depends on the account principal and platform leverage ratio. The maximum amount of loan that the user can apply for is net asset conversion (BTC) × Multiple - 1) - borrowed assets
for example, if the maximum leverage ratio of the platform is 3 times, the number of digital currencies that users can borrow is 2 times of the principal
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, several trading platforms have recently created "financial games" for bitcoin. For example, huocoin.com has implemented "leverage short mechanism", and other websites are specialized in trading bitcoin futures, bitcoin gold futures, bitcoin stock index futures, etc. The player said: "the leverage shorting mechanism of fire coin network stipulates that the amount of money users borrow or borrow is twice of their personal net assets, and their personal net assets are calculated according to the value of bitcoin converted into RMB at that time. The interest of financing and currency financing business is calculated in the form of simple interest, and the interest standard is 0.1% - 0.2% per day. "
some players see that bitcoin is not as good as before, so they withdraw their investment and switch to lightcoin. Lightcoin is bitcoin's "Shanzhai coin", a lightcoin player said: "recently, the price of lightcoin has gone up, like bitcoin, which is just beginning to heat up. The price of virtual currency changes fast. I put it in earlier, and I made a lot of money by playing a stimulus. " The author pays close attention to the price trend of Leyte currency. In two hours, the price rose from more than 70 yuan to more than 120 yuan, and then quickly dropped to more than 90 yuan
the transaction risk should not be underestimated
any investment can not but mention the risk, especially bitcoin, which is free from regulation
retail players on the trading platform are most worried about running away from the platform. One player said: "we recharge our money to the trading platform, and we are worried about the platform disappearing overnight. Recently, as many people cashed out and left, the website server collapsed. Once it showed that it was unable to log in, it was a little nervous. " Now there are bitcoin rights groups, the players said: "there is no specific protection for rights, just take precautions."
in addition, some players are worried that bitcoin will be greatly hyped up because it has only 21 million, which is a scarce resource. But the question is whether bitcoin is unique? In fact, now there are many counterfeit coins, once the scarcity is not there, it will be worthless
some people compare bitcoin to the tulip of the Netherlands. After the crazy speculation, the investors who accept the last stick may be the worst, and this person will certainly appear
according to the security report of 360 security center, bitcoin investors are mainly faced with the threat of bitcoin "mining Trojan horse" and investment account number theft. For netizens who have not invested in bitcoin, there is also the risk of being "mining" controlled by Trojan horse. In recent month, there have been nearly 10000 Trojan horse variants. 360 security experts remind that bitcoin investors should pay attention to setting an independent password for the trading account, so as to avoid the password leakage of other websites leading to the cracking of bitcoin trading market account by hackers.