1. Spot: The act of buying spot currency and waiting for the currency price Q to rise to sell it to earn the price difference.

2. Contracts: Cryptocurrency Derivatives. Get numbers by judging the market outlook and choosing to go long (buy up) or short (buy down).

Currency ° Gains from rising/falling prices.

3. Leverage: used in conjunction with contracts to increase profit margins. The size of the leverage ratio is directly proportional to the return and the risk.

High multiples bring high returns and high risks, while low multiples have low returns and low risks.

4. Go long (long): Optimistic about the market outlook, buy bullish. Income = principal Qx increase x leverage multiple.

Loss: principal x drop x leverage multiple.

5. Short selling (short position): Bearish market outlook, sell bearish. Profit = Principal × Drop × Leverage multiple

Loss = principal x gain x leverage multiple.

6. Liquidation:

Long position liquidation:

The principle of long orders is to be bullish about the market outlook, borrow money first to buy, and then sell at a higher price

Make a profit on the price difference, repay the borrowed funds, and the remainder is profit. If a long position encounters a falling market and the loss amount reaches the account margin, the position will be forced to be liquidated and the account assets will be cleared. For example, if you think the market outlook is going to rise at a certain price, you open a long position 10 times, that is, the long amount is ten times the margin. Your margin is 10,000 U, and going long ten times is equivalent to the exchange. First, it lends you 90,000 U, and you use the 100,000 U to open a long position. If the currency price drops by 10%, it is equivalent to opening a position of 100,000 and already losing 10,000. , and your principal is only 10,000, and the remaining 90,000 is borrowed. In order to prevent you from repaying it, the exchange will forcefully take back the 90,000 lent to you, and because your 10,000 has already been lost, the account There is no more money, it returns to zero, this is a long position liquidation.

Short position liquidation:

The principle of a short order is to be bearish on the market outlook, borrow the currency first and sell it, and then buy the same currency at a lower price if it falls and return it to the borrower. , the remaining money is profit. If the short order encounters a rising market and the money you previously borrowed to sell the currency is not enough to buy back the same number of coins at a high price and return it, you will be forced to buy and return it. At this time, the currency price is higher than the opening price, and your principal will be increased by borrowing. The currency A can only buy back the same number of coins and return them. After returning the coins, your money is gone. For example, if you are 10 times short on a certain currency at a price of 10,000 U, your margin is 10,000 U, which is equivalent to the exchange lending you 9 coins worth 90,000 U plus one of yours worth 10,000 U. You sell 10 coins in total first, then buy 9 coins at a low price after the price drops and return it to the borrower, and the rest is profit. However, when the currency price increased by 11%, the currency price was 11,100 U. The 100,000 U you sold before could only buy you 9 coins at this time, but the exchange had previously borrowed 9 coins from you. At this time, the most you could buy was 9 coins. You can only afford 9 coins. In order to prevent the currency price from continuing to rise, the exchange will force you to buy 9 coins with the 100,000 U you spent to open a short position and buy 9 coins because your account is not enough to buy 9 coins and return them. Take it back. At this time, your principal is gone. This is a short position liquidation.

7. Liquidation: When the market fluctuates violently, the currency price reaches the liquidation price, but because the fluctuation is too fast and the position cannot be closed in time, the borrowed money or currency is still unpaid. Not only the funds liquidate and return to zero, but the transaction is owed. All the money.

8. Position closing: the act of manually terminating contract transactions, taking profit and stop loss.