In fact, the cryptocurrency contract is similar to a futures contract. It is a financial derivative. The subject of the transaction is not the physical object, but the rise and fall of the commodity price. You can go long or short, buy and sell at any time. For example, if an investor judges that a certain currency will rise, he can buy a rising contract. If the price rises, the investment can make a profit, and vice versa. It should be noted that contract transactions generally have leverage, so there are risks. It is a financial product of venture capital, high risk, high return, and the higher the level of the trader, the more you earn. The most important thing is that many digital currency exchanges now have commissions on handling fees. Some traders will take advantage of this fee. After placing an order, they will close the position as long as there is no loss. It is commonly known as: brushing orders.
Additional information:
1. There are two types of cryptocurrency contracts: one is a delivery contract and the other is a perpetual contract.
A delivery contract has a delivery period, just like futures. When the delivery time comes, it will be automatically closed. A perpetual contract has no time limit and can be closed at any time.
Contracts are about buying long and short. If the market goes up, you make money by buying long, and if the market goes down, you make money by buying short. Then you add leverage to trade. You can freely choose the leverage multiple. Different leverage multiples have different risks. Contracts are actually optimized on the basis of leverage trading, so that users can better operate buying and selling. Compared with spot trading, contracts have an additional option of buying short (the so-called buying short means buying short), so they are more flexible than spot trading.
2. In the contract trading of digital assets, investors can judge the direction of price fluctuations. Users can judge the rise and fall in contract trading, choose to buy long, or sell short, to obtain the benefits brought by the rise or fall. In layman's terms, it can be traded in both directions, you can buy up or sell down, just according to the trend. Everyone knows that contracts are leveraged. The advantage of leverage is that it can maximize the use of funds. For example, 100 times leverage means that 10,000 U can be used as 1 million U. Everyone can use leverage reasonably to achieve small funds and large returns.
3. The risk of contracts. Many people have certain misunderstandings about contracts and leverage. So is the risk of contract trading high? How to control it? Risks exist in any investment market. Many people also think that contract trading has leverage and is very risky. Let me explain again that the risk itself is not leverage, but exists in the investor's own understanding and control of risk. If you don't have the ability to buy so many currencies, don't think about getting rich overnight. Don't go all in at every turn, and allocate your positions well. (The combination of position + risk rate + rate of return + compound interest thinking is the most critical factor that determines whether you can make money, and whether you make a lot or a little). And the most important thing is to have your own trading strategy and strictly follow the trading strategy you have set!
Recently, I plan to ambush a potential coin that is ready to explode. It is very easy to double it. At the same time, I am also preparing to find some potential coins to hold by the end of the year. The expected space is more than 10 times, and there is no problem. Follow up and eat meat below 999