- 1 A. 100,000 Bitcoin liquidated positions in one day, why does this happen
- 2 B. What does Bitcoin liquidation mean
- 3 C. The digital currency margin is 10,000, and the 20-fold leverage is liquidated or forced to liquidate. If I lose the 10,000 margin, do I still need to pay?
- 4 D. Bitcoin flash crash, 49.3 billion capital nearly exploded, how much loss has it caused to investors
- 5 E. Many people who speculate in Bitcoin have liquidated their positions. What does liquidation mean?
- 6 F. Is the Bitcoin liquidation a total loss?
- 7 G. 360,000 people liquidated their positions within 24 hours of the Bitcoin crash, what is liquidation
- 8 H. How is the leverage of digital currency futures contracts easy to liquidate?
- 9 I. How much is 20% of Bitcoin’s 10x leveraged income
A. 100,000 Bitcoin liquidated positions in one day, why does this happen
B. What does Bitcoin liquidation mean
Bitcoin liquidation: If you borrow money to buy bitcoins, when the price falls to the principal and the bitcoins bought with the borrowed money 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.
C. The digital currency margin is 10,000, and the 20-fold leverage is liquidated or forced to liquidate. If I lose the 10,000 margin, do I still need to pay?
Inevitably Losing money
In recent years, virtual currency-related hype (such as ICO, IFO, IEO, IMO, and STO, etc.) has been renovated and speculation has prevailed, prices have skyrocketed, and risks have rapidly accumulated. Relevant financing entities sell and circulate tokens in violation of regulations to raise funds from investors or virtual currencies such as Bitcoin and Ethereum, which are essentially unapproved and illegal public financing behaviors, suspected of illegally selling token tickets, illegally issuing securities and Illegal fund-raising, financial fraud, pyramid schemes and other crimes have seriously disrupted the economic and financial order.
On September 4, 2017, seven ministries including the People’s Bank of China issued the “Announcement on Preventing Token Issuance and Financing Risks” to clean up and rectify ICO and virtual currency trading venues. The sharp drop effectively avoided the impact of the sharp rise and fall of virtual currency prices on my country’s financial market.
D. Bitcoin flash crash, 49.3 billion capital nearly exploded, how much loss has it caused to investors
First of all, in my opinion, this question is actually equivalent to a false proposition . After the Bitcoin flash crash, nearly 40 billion of funds did lose money, but I know that Bitcoin itself is the same as the stock market. It will fall, and then there will also be a skyrocketing situation, so this is only a short-term market fluctuation. . But we can’t look at Bitcoin from the perspective of stocks. After all, Bitcoin has fallen to the bottom before. So today, I will discuss with you what losses will be caused to investors by the flash crash of Bitcoin.
Third, how do you view Bitcoin investment?
I have a piece of advice below all of my answers about bitcoin, that if you are an average family, don’t invest in bitcoin, because bitcoin itself is like a stock , but it does not conform to the objective economic laws of our market. Its scarcity, as well as its privacy and free liquidity, are worthless in and of themselves.
E. 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 commodity price of the investment If there is a drop and the price 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, this situation is a liquidation. Investor’s own investment�� Lose light.
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.
F. Is the Bitcoin liquidation a total loss?
Yes, it is true, if our own funds are all pressed in, once the market goes in the opposite direction, our own The funds in hand are limited, but the actual position is far greater than our personal affordability, and there is only one result, that is, the liquidation. Liquidation means that all your floating and lost funds have been taken over by the secondary market platform.
G. 360,000 people liquidated their positions within 24 hours of the Bitcoin crash, what is liquidation
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. Experts say that liquidation is mostly related to mismanagement of funds. In order to avoid this situation, it is necessary to control the amount of open interest, manage funds reasonably, and avoid the full position operation that may occur in stock trading; and unlike stock trading, investors must track the stock index futures market in a timely manner. Therefore, stock index futures are not actually suitable for all investors.
H. How is the leverage of digital currency futures contracts easy to liquidate?
The leverage of CBOE Bitcoin is 20 times, calculated at the current price, 5320, which can be understood as , you use $5320 to buy 5320*20 times the value, but if you drop 1 point, you will lose $20. Then, 5320 / 20 = 266, down 266 points, that is, to 5054 points, your principal It’s all gone. 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.
I. How much is 20% of Bitcoin’s 10x leveraged income
Abstract Bitcoin 10x leveraged trading means that investors use 10x leverage. If the investor makes a profit, The investor’s income is 10 times the original basis. On the contrary, if there is a loss, the loss is also 10 times the original basis. 20% is 0.2