Bitcoin contract liquidation price

“One” What does it mean to liquidate a bitcoin position

Bitcoin liquidation: If you borrow money to buy bitcoin, the price will fall to the principal and borrow money to buy When the bitcoins are 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.

『Ⅱ』 Many people who speculate in Bitcoin have liquidated their positions. What does liquidation mean

The so-called liquidation means that investors use the rod 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. For investors, When this happens, 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.

『Three』How to calculate the liquidation price for shorting Bitcoin

It depends on how much leverage you have, such as 10 times leverage, the price of Bitcoin is 2500 yuan, then it is (2500/10)*0.75=187.5 yuan. When the price changes by 0.75 times, it will reverse the transaction and automatically close the position, and then you will be out of stock.

『4』 What is digital currency contract liquidation

Digital currency liquidation means that the deposit paid by users when investing in digital currency can no longer be maintained. Contract, 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, you must enter the marketcautious.
Response time: 2021-03-16, please refer to the official website of Ping An Bank for the latest business changes.
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“Wu” Numbers How to calculate the leverage of currency futures contracts and why is it easy to liquidate?

Bitcoin on the Chicago Board Options Exchange, leveraged 20 times, calculated at the current price, 5320, it can be understood that you use $5320 to buy the value of 5320 *20 times the value, but if you drop 1 point, you will lose $20. Then, 5320 / 20 = 266, if you drop 266 points, you will lose all your principal when it reaches 5054 points. On Thursday, Bitcoin fell from 7840 to 5765 in one day, a drop of 26.8%, a drop of 2075 points, about 8 times of liquidation, ha, so be aware of risks.

『Lu』Why bitcoin futures will be liquidated and liquidated

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 in 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 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.

『柒』What does it mean to liquidate a bitcoin position

Close a position: the behavior of long investors selling bitcoin in the bitcoin market, Or the act of short-selling 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.

『渌』 Short and long positions are all liquidated, why does the price of Bitcoin rise again and again?

According to media reports, since the end of 2020, the cryptocurrency has welcomed With the “mad increase” mode, the unit price of one piece has continuously crossed the threshold of 20,000 US dollars and 25,000 US dollars, and now it has reached 27,000 US dollars, and the unit price is about 180,000 yuan.

Bitcoin prices skyrocket, but investors still need to be cautious

Meanwhile, Tesla CEO Elon Musk also showed a contrast through social media networks Interest in Bitcoin, which it says is perfectly structured, suggests Tesla is considering buying Bitcoin. It is foreseeable that when these “big men” also join in, the price of Bitcoin will definitely continue to soar.


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