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What is permanent contract insurance?
"Contract+Insurance" is a contract trading mode initiated by BMEX, aiming at reducing the trading risk for investors participating in the contract. In BMEX contract insurance mode, users can choose to buy any amount of insurance when conducting contract transactions. In case of trading losses, the platform will start the double indemnity mechanism.

The compensation mechanism of BMEX contract insurance is as follows:

If the loss amount is

If the loss amount is greater than the insured amount, pay 2 times the insured amount;

Contract trading is an important part of financial derivatives. Compared with the traditional financial industry, the leverage ratio of digital currency contracts is higher, and the leverage ratio of some trading platforms reaches 200%, which not only increases the income, but also deepens the loss.

BMEX's "contract+insurance" model can solve this problem well, and users can purchase the corresponding insurance ratio according to the proportion of a single contract transaction, thus minimizing the risk. Especially, more and more investors flock to the digital trading market, and the lack of experience undoubtedly increases the probability of loss. It can be seen that "contract+insurance" is the general trend.