php editor Youzi is here to answer a popular question for everyone: What is currency circle contract trading, and what is currency circle opening? To put it simply, currency contract trading is a way of trading through contracts instead of directly buying and holding digital currencies. Contract trading allows investors to conduct long and short operations, which means they have the opportunity to profit when the market rises or falls. Opening a position in the currency circle means that investors choose the direction of opening a position (long or short) and the number of positions to open when conducting contract transactions. After opening a position, investors can realize profits or stop losses by closing the position. Currency contract trading and position opening operations give investors greater flexibility and opportunities, but they also bring higher risks.
1. What is contract trading?
Contract transactions can be two-way transactions, you can buy up or down
2. What is opening a position? Opening a position means opening a position and starting to buy or sell to open a short position.
3.What is a position? A trader holds a position after opening it but before closing it.
4． What is closing a position? Closing a position means ending a transaction and is the reverse operation of opening a position. If you open a position by buying (opening a long position), you will need to sell when closing the position, which is called selling to close the long position; conversely, if you open a position by selling (opening a short position), then you will buy when closing the position, which is called buying to close the short position.
5． What does it mean to buy and open long? Bullish market - buy to open long - sell to close. This is a strategy used when the currency price is expected to rise. When the currency price is expected to rise next, it is natural to buy, so it is called buying to open long.
6. What does it mean to sell short? Bearish market - sell to open a short position - buy to close the position This is a strategy used when it is believed that the currency price will fall. When it is expected that the currency price will fall next, it is natural to sell, so it is called selling to open a short position.
7.What is a position? Full position? Heavy warehouse? Light warehouse? Short position? Position: refers to the ratio between the investor’s actual investment and the actual investment funds. Full position: refers to buying all the funds into a heavy position at one time: compared with the available funds and investment funds, the proportion of investment funds accounts for a small position. : Compared with available funds and investment funds, investment funds account for a small share. Short position: Sell all your positions and convert them all into funds.
8. What is profit and loss? Stop profit: After obtaining a certain amount of profit, sell the currency you hold to keep the profit. Stop loss: After the loss reaches a certain level, sell the currency you hold to prevent the loss from further expansion
9. How many types of contract transactions are there? Contract transactions are divided into delivery contracts and perpetual contracts. 10. What currencies are supported by the two contract types?
Delivery contract: btc ltc eth etc xrp eos bch bsv
Perpetual contract: btc ltc eth etc xrp eos bch bsv trx
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