The leverage of bitcoin virtual contract shows the leverage stability at the level of legal tender income: if you invest 100 USD, the income you can get = 100 USD * the rise and fall of bitcoin * a fixed leverage multiple.
Suppose the current price is $500 /BTC, and an investor buys a BTC at the current price with a principal of $500. At this time, investors can make 50 more BTC virtual contracts.
At this time, if the price of BTC rises to $750, an increase of 50%, the investor's contract income is 3.3333 BTCs. After selling at the current price, he can get $2,500, and the income is five times that of his principal investment.
Bitcoin futures provided by bitcoin exchanges are usually traded in bitcoin. Contrary to spot, spot is a real commodity that can be delivered by one hand, but futures is not a "commodity", but an agreement (contract) that promises to deliver the "commodity" (target) at some time in the future-a futures contract.
Extended data:
A futures contract is an agreement in which the buyer agrees to receive assets at a specific price after a specified time, and the seller agrees to deliver assets at a specific price after a specified time. The price that both parties agree to use in future transactions is called futures price.
The designated date on which both parties must conduct transactions in the future is called settlement date or delivery date. The assets that both parties agree to exchange are called "targets". If an investor obtains a position in the market by buying a futures contract (that is, agreeing to buy it at a future date), it is called a long position or a futures long position.
On the contrary, if the position obtained by investors is to sell futures contracts (that is, to assume the contractual responsibility for future sales), it is called short positions or short futures.
References:
Baidu Encyclopedia-Futures Contract
References:
Baidu Encyclopedia-Bitcoin Futures