Heavy position operation: As the leverage of digital currency is as high as 1.25 times, the risk-taking ability of high-leverage heavy position trading is relatively poor, which is also the main reason for short positions. Investors who are eager for quick success and instant benefit are often like this. It is suggested that you choose the appropriate leverage when operating bitcoin contracts, such as 1-50 times. Remember to choose 1.25 times leverage in uncertain market, and try to control the position at 3-0.

Frequent operation: Frequent operation is also one of the main factors leading to the collapse of the contract, mainly because investors' psychology is that they want to earn more when they earn, and they want to earn back when they lose, so as to conduct intraday trading. The reason is: psychologically speaking, there is no plan, I am eager to turn over the books, place orders casually, and place orders emotionally. Finally, I couldn't control my mentality, began to cut one order after another, and finally exploded.

Characteristics of warehouse explosion

A short position means that the account equity is negative, which means that the deposit is not only gone, but also owed. Under normal circumstances, there will be no explosion of positions under the daily liquidation system and the forced liquidation system.

For example, since the introduction of China's stock index futures, there has never been an accident of traders' short positions. This is because stock index futures have never been subject to price limits. Once the trader's margin is insufficient and cannot be replenished in time, the futures company will immediately take strong measures to prevent the occurrence of short positions to the greatest extent.