Will shorting Bitcoin close stocks go up? Before answering this question, perhaps many people are not familiar with bitcoin stocks, so what is bitcoin stocks? The following are the bitcoin closing short stocks brought to you by Bian Xiao. Will it rise? I hope you like it.
Will short bitcoin clearing stocks rise?
Shorting bitcoin cannot be achieved by closing stocks, because bitcoin is not a stock. Bitcoin is a virtual currency and has no direct relationship with the stock market.
In the financial market, shorting usually refers to selling an asset, hoping to buy it again when the price falls to make a profit. However, Bitcoin is not a stock, it is a cryptocurrency, and the transaction takes place on the digital currency Stock Exchange, not the stock market.
If you want to trade Bitcoin, including short selling, you can choose to register an account with the appropriate digital currency Stock Exchange and trade it. Before making any investment, please fully understand the characteristics, risks and rules of digital currency market, and carefully evaluate your investment ability and risk tolerance.
It should be noted that the digital currency market such as Bitcoin is highly volatile and risky, and the price may fluctuate violently, so investors should be responsible for the investment losses. For investment advice, please consult a professional financial advisor or refer to reliable information sources.
What does bitcoin bear mean?
Bitcoin liquidation means that investors buy bitcoin through short selling in the bitcoin market. It is also possible that investors who bought too many coins sold their bitcoin in the market. Bitcoin clearing can also be divided into bitcoin compulsory clearing and hedge clearing. Compulsory liquidation refers to compulsory restriction of the use of positions and hedging liquidation.
What does the empty bitcoin mean?
Going long means that investors expect the market to rise in the future and buy a certain number of digital asset bullish contracts.
Take bitcoin contract transactions as an example. When the price of bitcoin is $5,000, we buy a contract worth 1 bitcoin. If the price of bitcoin rises to $5,500 each, we can make a profit of $500 by selling the contract with the value of 1 bitcoin.
On the contrary, short selling refers to investors selling a certain number of digital asset put contracts in anticipation of future market decline.
Digital currency's short position is that the deposit paid by users when investing in digital currency can no longer maintain the original contract. At this time, investors will be forced to close their positions if they can't add margin in time. At this time, the margin will be zero, which is also digital currency's short position. Such short positions will make investors have greater losses.
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. If you are short, you will lose more than the money in your account. The remaining funds are the total funds MINUS your losses, and generally there will be a part left.
Bitcoin is common in digital currency. Nowadays, many users use their spare money to invest in Bitcoin, but they will face greater risks in the process of buying and selling. For example, the price of a bitcoin is several thousand dollars, which fluctuates greatly, so it is difficult for ordinary users to accurately grasp the price trend.
The cause of the warehouse explosion
There are different reasons for the explosion. Here are some reasons:
1. No stop loss. Investors did not set a stop loss point before trading, and did not stop loss in time when the price fluctuated, resulting in short positions.
2. Investors invest heavily and blindly operate with high leverage. Prices fluctuate slightly, and they may break out in a short time. For example, investors choose leverage 100 times. At this time, if the price fluctuates 1%, it will explode.
3. I didn't keep an eye on the position when investing, which led to the failure to add the margin in time when the price fluctuated.
4. The black swan event caused a drastic change in the market.
How much the stock falls will force the liquidation.
Forced liquidation can be said to be a stop loss specially set for customers, and there is no loss. How much forced liquidation is achieved depends on the platform. Many platforms will be forced to close their positions when the total number of customers loses 70%, and our platform will be forced to close its positions when it loses 50%.
If you buy stocks at your own expense, you will not be forced to close your position. In the case of margin financing and securities lending, it was previously stipulated that the liquidation line of the two companies was 130%. According to the latest implementation rules of the two financial institutions, the unified restriction that the guarantee ratio should not be less than 65,438+0.30% has been abolished, and the securities company will independently agree on the minimum guarantee ratio with the customer according to the customer's credit standing, collateral quality and the company's risk tolerance.