contract currency bitcoin

Ⅰ What is the meaning of bitcoin contract trading and where to open it?

It is consistent with the meaning of commodity futures contract trading. It is a transaction method that takes Bitcoin standardized contracts as the subject matter, and conducts collective auction transactions through electronic trading platforms to conduct unified transaction, transfer, and settlement, and real-time display of price quotations.
At present, bitcoin contract transactions can be bought and sold on many exchanges, and the contract value and rules are different. You need to choose the one that suits you according to your actual situation.
As for the question of where to open a contract transaction, you can open a contract transaction after you find a suitable exchange to open an account.
Let’s try to accept it, if you don’t understand, please ask.

Ⅱ What is bitcoin contract transaction

1. Definition of contract
A futures contract is a buyer who agrees to receive a certain price at a specified price after a specified period of time. An agreement in which a seller agrees to deliver an asset at a specified price after a specified period of time.
The price that both parties agree to use in future transactions is called the futures price. The specified date on which the two parties must transact in the future is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”.
If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is called a long position or a long position in futures. Conversely, if an investor takes a position by selling a futures contract (that is, taking responsibility for the contract to be sold in the future), it is called a short position or short on futures.

2. The origin of the contract
A futures contract refers to a standardized contract formulated by a futures exchange that stipulates the delivery of a certain quantity and quality of commodities at a specific time and place in the future. It is the object of futures trading, and the participants of futures trading transfer price risk and obtain risk returns by buying and selling futures contracts on the futures exchange.
Futures contracts are developed on the basis of spot contracts and spot forward contracts, but the most essential difference between them is the standardization of the terms of futures contracts. For futures contracts traded in the futures market, the quantity, quality grade and delivery grade of the subject matter, as well as the premiums and discounts of substitutes, delivery locations, delivery months and other terms are standardized, making futures contracts universal.
In the futures contract, only the futures price is the only variable, which is generated by open auction on the exchange.

3. Classification of contracts
Digital currency contracts can be divided into: delivery contracts and perpetual contracts.
(1) Delivery contract: Futures delivery refers to the process in which both parties to the transaction settle the expired open contracts through the transfer of the ownership of the commodities contained in the futures contract when the futures contract expires.
(2) Perpetual contract: It is a derivative similar to leveraged spot trading, and is a digital currency contract product settled in BTC, USDT and other currencies. Investors can obtain the benefits of rising digital currency prices by buying long, or obtain benefits from falling digital currency prices by selling short.
Perpetual contracts differ from traditional futures in a certain way: they have no expiration time, so there is no limit to how long a position can be held. In order to ensure that the underlying price index is tracked, the perpetual contract ensures that its price closely follows the price of the underlying asset through the mechanism of funding fees.

Ⅲ What does Bitcoin contract trading mean

Contract trading is a general term for Bitcoin Litecoin futures contract trading.
In June 2013, 796 Exchange was the first in the bitcoin industry to develop bitcoin weekly delivery standard futures—T+0 two-way trading virtual commodities as collateral barter contracts (contract transactions).
The emergence of contract trading ended the previous history that Bitcoin could not be shorted, and opened the prelude to the development and prosperity of the Bitcoin derivatives market.

Reminder: The above information is for reference only and does not represent any advice.

Response time: 2020-12-16, please refer to the official website of Ping An Bank for the latest business changes.
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Ⅳ Bitcoin Contract How to play

The normal contract exchange is, assuming that the margin in your account is 100,000 yuan, you open 5 times leverage, and buy a long bitcoin contract. At this time, your margin It will be magnified by 5 times, and the benefits and risks will also be magnified by 5 times.
If Bitcoin goes up by 10%, then you will earn 100,000*10%*5=50,000.
If Bitcoin falls by 10%, you will lose 50,000 yuan. When Bitcoin falls by 20%, all your margin will be lost, that is, you will be liquidated.
As for how to make money
This depends on your luck, as well as your own trading experience and trading skills.

Ⅳ What is a Bitcoin contract

Basics of a Bitcoin contract

A Bitcoin contract means a��Contracts that can be traded without actually owning Bitcoin. It is very different from currency-to-currency transactions, which must be physically held in digital currency.

Bitcoin contracts allow you to predict Bitcoin price movements and hedge risk. This way of trading means you are investing in price trends, not the asset itself.

When trading Bitcoin contracts, you can decide to go short or long. Choosing to go long indicates that you expect the price of Bitcoin to rise. On the other hand, choosing to go short indicates that you expect the price to fall.

Leveraged trading

You can choose to trade with high leverage, which is a feature of Bitcoin contracts. Using leverage means that you do not have to invest 100% of the transaction amount when trading contracts. Instead, you only need to deposit an initial margin, which is only a fraction of the total contract value.

Leveraged trading allows you to have a large exposure with a small amount of money while managing risk.

Perpetual Contracts

Although there are many different types of contracts, this article focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who use perpetual contracts to go long or short can hold their positions indefinitely, unless the contract is liquidated, which means they will not lose more than their initial margin.

In perpetual contracts, Bitcoin is priced based on a specific index price. Index prices are based on the average price of Bitcoin across multiple cryptocurrency exchanges.

Bitcoin contracts have become a very popular trading tool. Contract trading opens the door for many traditional investors who are not ready to allocate funds to digital assets but still want to benefit from attractive price volatility.

To open Bitcoin contract trading, you need to find an exchange that offers contract trading. The AAX platform, in a compliant and secure environment, provides you with bitcoin contract trading services.

VI What is a Bitcoin futures contract

Bitcoin futures contracts are usually standardized contracts based on the Bitcoin price index.

Bitcoin futures offered by bitcoin exchanges are usually traded in bitcoin. Futures are relative to the spot, and the spot is a commodity that can be delivered with one hand and one hand, while futures are not actually “goods”, but an agreement (contract) that promises to deliver “goods” (subject) at a future time – futures contract .

Subject: Also known as the underlying asset, which explains what to buy or sell. At present, the underlying bitcoin futures are the bitcoin price index, and the methods of generating settlement and delivery prices are based on this index.

Fees: Unlike stock transactions, which are subject to stamp duties, commissions, transfer fees, and other fees, futures transactions are only charged a handling fee. There are two types of transaction fees for Bitcoin futures: opening and closing positions, which are charged when opening a position (such as OKCoin) and when closing a position (such as 796). Bitcoin futures fees are generally 0.03% of the total contract value.

Margin: Margin is closely related to another concept – leverage, which generally reflects the level of income and risk by leverage ratio. For example, 796’s newly launched 50 times leverage (ie 2% margin), it means that investors can invest 1 Bitcoin to buy 50 Bitcoin futures contracts (ie 50 times leverage);

or From another perspective, 1 bitcoin invested by an investor is equivalent to 2% of the 50 bitcoins purchased (ie, 2% margin ratio).

Through 50 times leverage, the return of futures relative to spot is magnified by 50 times, such as buying 1 coin spot and buying 50 more coin futures with 1 coin at the same time, assuming spot and futures prices If both rise by 100%, then the spot earns 1 coin, and the futures earns 50 coins.

(6) Contract Coin Bitcoin Extended Reading

A futures contract is an agreement in which a buyer agrees to receive an asset at a specified price after a specified period of time, and a seller agrees to deliver an asset at a specified price after a specified period of time. The price that both parties agree to use in future transactions is called the futures price.

The specified date on which future transactions must be entered into between the parties is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”. If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is said to be a long position or a long position in futures.

On the contrary, if the investor’s position is to sell a futures contract (that is, to assume responsibility for the contract to be sold in the future), it is called a short position or a short position on futures.

VII How to trade bitcoin contracts

Similar to futures contracts, it is a trading method proposed by BitStar.
The leverage of the Bitcoin virtual contract is the stable leverage of the fiat currency income level: investing $100, the income you can get = $100 * Bitcoin’s rise and fall * fixed leverage multiple.
Assuming that the current price is 500USD/BTC, an investor buys one BTC at the current price, and the principal is 500USD. At this time, the investor can buy 50 BTC virtual contracts. At this time, if the BTC price rises to US$750, an increase of 50%, the investor’s contract income is 3.3333 BTC, and after selling at the current price, he can obtain US$2,500, and the income is 5 times the principal investment. If the price rises to $1,000, the contract income is 5BTC, and the dollar income after selling is $5,000, which is 10 times its dollar income. No matter how the price fluctuates, the leverage of the contract is very stable, which makes it convenient for merchants to hedge with the contract and for ordinary investors to manage their positions.

VIII What does bitcoin contract mean

Bitcoin contract is a contract that can be traded without actually owning bitcoin. It is very different from currency-to-currency transactions, which must be physically held in digital currency.

Bitcoin contracts allow you to predict Bitcoin price movements and hedge risk. This way of trading means you are investing in price trends, not the asset itself.

When trading Bitcoin contracts, you can decide to go short or long. Choosing to go long indicates that you expect the price of Bitcoin to rise. On the other hand, choosing to go short indicates that you expect the price to fall.

Leveraged trading

You can choose to trade with high leverage, which is a feature of Bitcoin contracts. Using leverage means that you do not have to invest 100% of the transaction amount when trading contracts. Instead, you only need to deposit an initial margin, which is only a fraction of the total contract value.

Leveraged trading allows you to have a large exposure with a small amount of money while managing risk.

Perpetual Contracts

Although there are many different types of contracts, this article focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who use perpetual contracts to go long or short can hold their positions indefinitely, unless the contract is liquidated, which means they will not lose more than their initial margin.

In perpetual contracts, Bitcoin is priced based on a specific index price. Index prices are based on the average price of Bitcoin across multiple cryptocurrency exchanges.

Bitcoin contracts have become a very popular trading tool. Contract trading opens the door for many traditional investors who are not ready to allocate funds to digital assets but still want to benefit from attractive price volatility.

To open Bitcoin contract trading, you need to find an exchange that offers contract trading. The AAX platform, in a compliant and secure environment, provides you with bitcoin contract trading services.

IX How to play bitcoin contracts

The contract can be completed directly on the bitcoin trading platform, and the leverage is the contract. However, the trading platform must be selected well, such as Huobi, Canadian currency station, etc. are more suitable, mainly because the main platform of the platform is the Bitcoin contract, in this way, many times the platform does activities about the contract users, and if you are in In the above, you can enjoy the corresponding benefits.

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