What does virtual currency contract leverage mean

1. Contract trading is a general term for the trading of bitcoin futures contracts
in June 2013, 796 exchange took the lead in developing the bitcoin weekly delivery standard Futures - t + 0 two-way trading virtual commodity barter contract (contract trading) in the bitcoin instry
the emergence of contract trading ended the previous history that bitcoin could not be short, and opened the prelude to the development and prosperity of bitcoin derivatives market

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2. The leverage of bitcoin on the Chicago Board Options Exchange is 20 times. At the current price, 5320 can be understood as: if you use 5320 US dollars to buy 5320 * 20 times of the value, but if you drop one point, you will lose 20 US dollars. Then, 5320 / 20 = 266, if you drop 266 points, that is to 5054, you will lose all your principal. On Thursday, bitcoin fell from 7840 to 5765 in one day, down 26.8%, down 2075 points, about eight times. Ha, so be aware of risks.

3. Anyone who knows about digital currency should know,

4. A lever is equivalent to a crowbar
you can pry heavy things with less force
in financial investment, leverage is equivalent to magnification
a leverage of 5 means that you can do business for 500 yuan with 100 yuan principal.

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

6.

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

7. Leverage trading, as the name suggests, 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. 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

leverage trading is also known as 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

the international financing multiple or 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, it will cost RMB 5000 per hand (if the currency of the transaction is different from that of the account guarantee gold coin, It is necessary to convert the amount of deposit; If the leverage ratio is 100 times, a margin of 1000 yuan is required for the transaction. The reason why banks or brokers dare to provide a larger proportion of financing is that the daily average fluctuation of the foreign exchange market is very small, only about 1%, and the foreign exchange market is continuous trading. With perfect technical means, banks or brokers can completely use less margin of investors to resist market fluctuations without having to bear their own risks. Foreign exchange guarantee metal is used for spot trading, and has some characteristics of futures trading, such as trading contract and providing financing, but its position can be held for a long time until it is voluntarily or compulsorily closed

8. Step 1: you can directly buy usdt in RMB through the "legal currency trading" channel of the hot currency Pro Professional station
Step 2: transfer the newly purchased usdt from the "OTC station" to the "professional station" through the mutual transfer within the station, and the payment will be received in seconds with no handling charge
Step 3: you can buy currency through the "currency trading" channel of the hot currency Pro Professional station