The leveraged transaction of digital currency is also known as virtual transaction and margin transaction. The leveraged transaction of digital currency is a kind of investment method that can be small and large. We know that with the surge of digital currency, global speculators are flocking, such a crazy market, there must be many crazy traders, the typical feature of these crazy traders is the lack of awe of the market. Many leveraged trading investments have led to their bankruptcy due to irrational trading strategies. Many novice investors may not yet understand what exactly is digital currency leverage? They also don’t know what the trading rules for digital currency leverage are? Let’s talk about it below.
What is digital currency leverage?
Margin trading is also known as margin trading. Investors use a small amount of capital to invest several times the original amount, in the hope of obtaining several times the return relative to the fluctuation of the investment target. Of course, there is also the risk of loss. Leverage trading is to amplify the principal. times, making larger investments with a small amount of capital, and realizing a doubled income with a small amount of money. Simply put, it means buying up and down.
What are the digital currency leverage trading rules?
1. Assets related
1. Total assets of the leveraged account: the total amount of currency in the currency-to-currency leveraged account, including available assets + frozen assets
2 .Transfer to property: transfer from the currency account to the currency in the leveraged account according to the asset transfer
3. Raise funds to the property: use the transfer property as the security deposit to raise the currency of funds
4.Available assets: the assets that the leveraged account can use to submit orders, including part of the transfer and fundraising
5.Frozen assets: the assets in the leveraged account that cannot be used to submit orders
II. Leverage related
1. Larger borrowing: refers to the customer’s large borrowing amount for the current currency pair, and the current maximum leverage is 3 times.
2. Calculation method for the maximum number of borrowings: the maximum number of borrowings = (total account assets – unpaid funds raised property – unpaid loan interest) * (larger leverage multiple – 1) – unpaid funds Funds and assets
3. Risk rate and exposure to heavy positions
1. Risk rate: an index value to assess the risk of exposure to exposure to leveraged accounts. When the risk rate is ≥ 150%, part of the unnecessary property in the account can be transferred out according to the asset allocation; when the risk rate is ≤ 130%, the risk rate is rated as risk, and the system software will send information and email reminders to customers Risk; when the risk rate is less than or equal to 110%, the system software will forcibly storm the warehouse, and send messages and emails to customers.
2. Calculation method of risk rate: risk rate = [(Total amount of billable currency assets – unpaid loan interest of billable currency) / new selling price + (total amount of currency assets bought and sold – buying and selling Loan unpaid loan interest)]/(Billing loan to raise funds/new selling price + buying and selling loan to raise funds)*100%
3. Violent position: when a certain currency is leveraged When the risk rate of the account is less than or equal to 110%, the system software will implement the actual operation of violent positions, and use all the property in the account to repay the loan debt.
4. Risk rate of violent position: Risk rate of violent position = 110%
5. Price of violent position: Every loan in DragonEx must pay a certain percentage of Guarantee, when there is a bad change in the sales market, for example, when the sales market has a big reversal of market conditions and changes to the opposite direction, when the total assets of the current leveraged account shrink to a certain extent, the system software will force the leveraged account The property is sold at the best price in the sales market to settle the borrowed currency and its loan interest.
6. The calculation method of the price of the violent position: the price of the violent position = (the fundraising property of the billable currency * the risk rate of the violent position + the unpaid loan interest of the billable currency – the total amount of the billable currency asset) /(Total amount of assets bought and sold – Loan interest unpaid – Loans raised by buying and selling assets * Risk rate of violent positions)
4. Loan interest and repayment
1. Interest payment standard: Interest is paid separately for each loan order information. Interest is paid for the first time when the borrowing is successful, and interest is paid every 24 hours thereafter.
2. Repayment Standard: Priority is given to the loan order information that was first converted into. The priority is to repay the loan interest, and then repay the capital. After the cost of each loan order information and the loan interest to be repaid are all settled, the information of each loan order will be changed to settled, and then the order information will not be paid.
The above is a detailed answer to the two questions of what is digital currency leverage and what are the trading rules of digital currency leverage. If you are still a novice in the currency circle, it is best not to touch the contract, because even ordinary spot transactions without leverage are very unfamiliar to many investments and restricted sales. You must know that there are very few people who are really good at trading. If knowledge and wealth do not match, it will be a disaster. Many times some people can make some money temporarily by virtue of luck, but this does not mean that these people will always make money. After all, less than 10% of the entire market makes money, so we must understand this.The cruelty of the field.