Bitcoin contract burst

(1) Why don’t bitcoin options explode like bitcoin contracts

Digital currency contracts are a deformation of traditional futures contracts. There are unified risks, margins are required, and there is a risk of liquidation. And the worst thing about digital currency contracts than traditional futures is that digital currency contracts cannot be physically delivered, which means that once the direction of the order is opposite to that of the order, and the ratio of the minimum margin is broken, the position must be forcibly closed, and there is no other way. , resulting in greater risk. Now some exchanges, such as Bitoffer, have launched bitcoin options products, which can amplify returns without the risk of liquidation.

(2) Many people who speculate in Bitcoin have liquidated their positions. What does liquidation mean?

The so-called liquidation means that investors use leverage to invest. When the price of the invested commodity falls and falls below the agreed price, the fund side will sell the investor’s investment target according to the contract, so as to ensure the safety of the fund side’s funds. It is a liquidation, and all the funds invested by the investors themselves are lost.

Bitcoin investment is much more risky than stock investment, and it is definitely a real meat grinder. There are no rules for Bitcoin transactions to follow. Maybe a rumor in the market will have a great impact on the price of Bitcoin. There are many rumors about Bitcoin in the market, and investors are very concerned about Bitcoin investment. Everyone wants to get a piece of the pie in bitcoin investing.

my country’s financial regulators have repeatedly warned investors about the risks of investing in virtual currencies, but there are always some people who continue to invest in virtual currencies, hoping to get higher returns from virtual currency investments. income. In any case, the investment risk of Bitcoin is still very large, and investors must pay attention to the investment risk.

(iii) Bitcoin futures liquidation occurred in October, November and December 2014? What happened to the futures liquidation? Is the loss in cash? >

Futures are traded on margin. When the loss of the account is too large, in order to control the risk, the exchange or futures company forcibly closes your position, which is a liquidation. Futures are traded in RMB, and the loss is of course real money

㈣ What does it mean to liquidate a Bitcoin position

Bitcoin liquidation: if you borrow Money to buy bitcoin, when the price falls to the principal and the bitcoin bought with borrowed money is only enough to repay the borrowed money, it is the bitcoin liquidation.
Liquidation refers to the situation in which the customer’s equity in the investor’s margin account is negative under certain special conditions. Liquidation means that the loss is greater than the margin in your account. The remaining funds after the liquidation by the company is the total funds minus your losses, and generally there is still a part left.
The concept of Bitcoin (Bitcoin) was originally proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009. The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a virtual encrypted digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.
Unlike all currencies, Bitcoin is not issued by a specific currency institution. It is generated by a large number of calculations according to a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all the Transaction behavior, and use cryptographic design to ensure the security of all aspects of currency circulation.
There should be few people who have liquidated their positions when Bitcoin has risen. But why do some people still liquidate their positions after Bitcoin hits new highs repeatedly, because most of the liquidators are short-sellers. These people borrowed some bitcoin from the platform and sold it, hoping that the price of the currency would fall and then buy it back to earn the difference, but they did not expect bitcoin to skyrocket. If it is only short, it will not be liquidated, the key is to add leverage.
In simple terms, it is to use the principal in your hand to open leverage (equivalent to loaning a part of money), and as a result, when the market falls, if you lose your actual principal, your position will be liquidated.
The current trading volume of Bitcoin is so large that if it is legal, then a formal trading platform like A shares and futures markets should be set up for trading. If it is not legal, transactions on various private platforms should be completely abolished.
The current situation is that neither a formal trading platform nor a private trading platform is opposed. There is no way for these private trading platforms to move their servers overseas, which leads to these platforms being able to arbitrarily set up their own trading platforms. delusional.

㈤ How does OKEX optimize the liquidation process of bitcoin futures transactions

When the user does not meet the margin requirements of the current level, the Lighten up your position and reduce it to a lower level of required margin. This rule of OKEX is very good. The maximumInvestors are fully protected.

㈥ Is there nothing after the bitcoin liquidation?

Hello, if you are doing bitcoin contracts, then the liquidation is nothing.

㈦ What is digital currency contract liquidation

Digital currency liquidation means that the deposit paid by the user when investing in digital currency can no longer maintain the original contract , at this time, when investors cannot add margin in time, they will be forced to liquidate their positions. At this time, the margin will return to zero, which is the liquidation of digital currency positions. Such liquidation will cause investors to have greater losses.

According to the “Announcement on Preventing Token Issuance and Financing Risks”, there is no approved digital currency trading platform in my country. According to my country’s digital currency regulations, investors have the freedom to participate in digital currency transactions at their own risk.

Warm reminder:
1. The above information is for reference only and does not make any suggestions;
2. Before investing, it is recommended that you first understand the risks of the project Investors, investment institutions, on-chain activity and other information are clearly understood, rather than blindly investing or mistakenly entering funds. Investment is risky, and you must be cautious when entering the market.
Response time: 2021-03-16, please refer to the official website of Ping An Bank for the latest business changes.
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㈧ Bitcoin futures Why liquidation and liquidation?

You should be talking about forced liquidation and liquidation.
Because Bitcoin futures are margin trading, it is equivalent to taking a small amount of money to leverage a certain amount of Bitcoin that originally required a certain amount of funds to buy. If you buy or sell in the opposite direction to Bitcoin futures, you will lose money. If the loss reaches a certain level, for example, the available funds of your account except the part of the money occupied by the margin are lost or become negative, the futures company and the exchange will force the liquidation in order to avoid losses. At this time, the money occupied by the customer’s margin needs to first repay the loss of the available funds before returning to the customer. If the loss is large, then after the forced liquidation, the funds occupied by the margin are basically only enough to repay the loss, and the funds returned to the customer’s account are basically gone, which is equivalent to liquidation.

㈨ What is the meaning of Bitcoin liquidation and liquidation

Closing positions: the behavior of long investors selling bitcoins in the bitcoin market, or short positions of investors buying Bitcoin in the market.
Liquidation: The so-called liquidation refers to the situation in which the customer’s equity in the investor’s margin account is negative under certain special conditions. When the market situation changes greatly, if most of the funds in the investor’s margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, it is easy to liquidate. If the liquidation leads to a shortfall and is caused by the investor, the investor needs to make up the shortfall, otherwise he will face legal recourse.

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