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The contract transaction is aEconomic nouns, yesBitcoinA general term for the trading of Letcoin futures contracts, which was signed and implemented in June 2013.
In June 2013, 796 Exchange took the lead in developing Bitcoin weekly delivery standard futures - T+0 two-way virtual commodity as pledge barter contract (contract trading).The emergence of contract transactions ended the history of Bitcoin that could not be short before, and opened Bitcoinderivativemarket development A prelude to prosperity.
Global Price Index
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BraveNewCoin Price Index
BraveNewCoin ('BNC ') 7x24 continuously collects the data of global mainstream cryptocurrency exchanges, calculates the BNC price index ('BPI') of each cryptocurrency, and obtains the latest data of all exchangesWeighted average price。ThisAverage priceThe cryptocurrency is relative to the US dollarNominal exchange rate(i.e. denominated in US dollars).
Weighted average price
Many exchanges trade in multiple currencies.BNC collects the data of different currencies in each cryptocurrency market separatelydata collectionDuring the period, calculate the weighted average price of each market.For example, toRMBTraded Bitcoin (BTC-CNY）, its market weighted average price (MWA) is the weighted average price of all exchanges that open this currency pair24 hoursAnd then converted into dollars.
data collection
Cryptocurrency exchanges provide current data of their exchanges.BNC.Each collection cycle is 5 minutes, and the collected data includes the latest transaction price of each cryptocurrency and thea turnover。BNC will also collect the latest bid and offer prices of each currency pair if the exchange can provide them.If the data of an exchange is unavailable for a certain period of time, BNC will report it.BNC will collect data on newly opened exchanges.Editor's Note: As long as the data is true, it will not discriminate against the data of smaller exchanges.
Beginner to proficient
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You may find the contract complex at the beginning.In fact, it only takes a few minutes to understand a few basic knowledge points to understand how the contract works.Many traders feel that the contract is easier to operate than the spot after contacting the contract.Now let's learn about the basic knowledge of contracts.
Basic concept - simplicity is beauty
Jump: The contract price will change up and down.The smallest unit of change is called "jump".It's very similar to the steps on the stairs.The step is the smallest change unit of the stairs, while "jump" is the smallest change unit of the contract.
Minimum amplitude jump:Contract priceThe minimum value that changes up and down is the size of each "jump".You can think of it as the height of the stairs.BitcoinandLettercoinThe minimum jump of the contract is 0.01 US dollars, that is to say, every time the price changes, it is at least 0.01 US dollars.For commodity barters, the dollar sign of jump or any other sign is meaningless.Just like climbing stairs, you only care about the number of steps, not the height of each step.Moreover, the minimum jump of each contract is preset,Market participantsCan't change it, so no one will care about it.Only when choosing the trading market, the minimum jump is worth studying.Once the deal starts, forget it.
Minimum jump value: the total profit or loss brought to the trader by every "jump" in the contract price.In the Bitcoin contract, the representative unit of hop value is Bitcoin;In the Lite Coin contract, the unit of jump value is Lite Coin.Different from the minimum jump, the size of the minimum jump value can be changed by traders, so we should pay attention to the minimum jump value.Traders start trading by building positions.After the position is established, the trader will gain or lose money from it every time the contract price rises or falls by a jump.The trader can change the position size（open interest）To adjust the minimum jump value.Establishing a larger cryptocurrency (Bitcoin or Litcoin) position means a larger minimum hop value.Once the position is established, no matter the currentdollarThe minimum jump value is fixed no matter how the price changes.At this point, the trader can simply calculate the current profit or loss of the existing position by calculating the number of jumps.Calculation formula: profit/loss (gain/loss)=minimum jump value x change quantity in the bin.For example, the latest price is 3.21 USD away from the position price. Because the minimum jump is 0.01 USD, the change quantity of the items in the position=3.21/0.01=321.Profit and loss=minimum jump value x321.
Note: The minimum jump value can be intuitively viewed using the transaction calculator provided in the 796 transaction order interface.The minimum jump value can help traders understand the risk faced by the established position.Minimum jump value, position quantity (transaction quantity) and transaction guarantee (transactionVirtual fund）It is a commodity barter three swordsman.Understanding the relationship between them can help you master the knowledge of commodity barter.
Judgment direction
Position: goods in processbarterIn, a position refers to a transaction status.If a position is held, it means that after the order is placed, the two parties to the transaction are matched and clinched with each other by holding the contract in the opposite direction at the agreed price and quantity.After the position is established (opened), the trader will hold the position until the position is closed through position closing, expiration settlement, or position explosion.
Position Quantity: the quantity of cryptocurrency in the position.It should be noted that each contract is jointly held by two traders who hold positions in the opposite direction.Positions refer to the amount of cryptocurrency unilaterally owned by traders.If the trader increases (signs more contracts) or decreases (partiallyclose a position）The number of positions established is called PositionSizing.Note: the position is not equal to the investment principal.In commodity barter, the investment principal is the initial transaction guarantee.
(See) Over/(See) Short: In commodity barter, traders need to accurately predict the direction of price changes and then invest.Contractual positions have only two directions: long and short.A long bet is a prediction of price rise, and a short bet is a prediction of price decline.There are only four scenarios for commodity barter:
Long positionThe latest price is higher than the opening price. The more "jump" points leaving the position price, the more profit the trader will make (more accurately, the more unrealized profits).
In a long position, the latest price is lower than the opening price, and the more "jump" points to leave the position price, the more losses the trader will suffer (more accurately, the more unrealized losses).
Short positionIn China, the latest price is higher than the opening price. The more "jump" points leaving the position price, the more losses the trader will suffer (more accurately, the more unrealized losses).
In short positions, the latest price is lower than the opening price, and the more "jump" points to leave the position price, the more profit the trader will make (more accurately, the more unrealized profits).
Position category ups and downs
Buying more profits and losses
Loss and profit from short selling
Optimize the role of original virtual capital
Transaction guarantee: if leverage is used in contract transaction, it is required to payPerformance bond(guarantee), that is, transaction guarantee.Transaction guarantees generally account for a small part of the total contract value.At 796, this ratio is optional, which is 5%, 10% and 20% respectively.That is to say, 796 provides a high commodity barter lever.Traders can use relatively few virtual funds to control contracts with huge value.This brings great flexibility and highTransaction efficiency。You may think that the function of leverage is similar to that of using trading guarantees to buy stocks.But instock marketIn, the use of transaction guarantees to buy stocks means that you need to buy through borrowing and lending.In the contract market, transaction guarantee is notBuy productsIs part of the payment.It is just the mortgage (credit amount) you submit to ensure that you can complete your daily position obligations.This is what the buyer and seller of the contract need to submit.
Tip: The transaction guarantee is deducted from the transaction guarantee account. Please transfer the cryptocurrency from your cryptocurrency wallet to the transaction guarantee account.
Initial transaction guarantee: performance guarantee delivered at the time of warehouse establishment.After the trader completes his contractual obligations, the trade guarantee will be returned to the trader's trade guarantee account.The required amount of initial transaction guarantee is only a small part of the amount required to actually purchase cryptocurrency in the contract.To put it simply, you can choose 5%, 10% or 20% of the virtual capital amount of the collateral position as the transaction guarantee when you barter goods and build a warehouse at 796.
ForexFactory.comRazor of the website_traderSaid, "Through leverage, the small controls the bigBrokerVery beneficial, because if you blindly use leverage, your account will soon dry up.So although brokers provide high leverage, you can still choose how to invest.Relatively low inputpercentageWill offset the side effects of leverage. "
The above statement is completely correct.
But please note that 796exchangeNot the kind of broker Razor_trader said.In fact, Razor_trader refers to the barrel company in the stock market (now illegal) andLegal currency transactionTrade counter of the industry.For example,New York stock exchange Listed legal tender brokersFXCMPublicly stated: "In the trading counter mode, FXCM acts asdealer , will set your transactionCurrency pairPrice andPrice difference。In this mode, FXCM can see your stop loss limit and profit from your trading losses.According to our experience, it is a common practice for brokers in the market to provide counter execution.
796 Exchange does not trade with traders and will not profit from any losses of traders.796 only serves as a platform to provide fair and transparent order matching services and settle contracts.At 796,High leverageNot a fast wasting traderAccount balanceBecause doing so is not good for 796.In fact, 796 Exchange has been adding more explosion-proof positions to help traders better deal with risks.
Famous financial writer DrVanTharp created and popularized the method of "position allocation" to manage transactions.High leverage is an excellent function provided by 796 to the cryptocurrency community, and 796 is proud of it.As mentioned earlier, low initial trading guarantee (high leverage) gives traders greater flexibility and virtualFund use efficiency。That is, by using high leverage, traders can adopt richer position allocation strategies to increase the probability of equity growth.
Position allocation: refers to the size of the position, or the number of cryptocurrencies held and closed by the trader.Position allocation and virtualizationfund managementClose contact has always been the top priority for traders to learn.If you want to further study position allocation, we strongly recommend you to useGoogleOr the DuckDuckGo search engine can find more information about the position allocation strategy.Learning position allocation can make better use of high leverage.
Contractual transactions-Market dynamicsCoefficient claiming agency: what is the market dynamic coefficient of 796 Exchange?
The concept of market dynamic coefficient should start from the profit and loss calculation formula.
Example: if the number of positions of an investor's multi position is 10 (BTC), the weighted average price is 350 (US dollars), the latest transaction price is 360 (US dollars), and the market dynamic coefficient is 400, then the floating profit and loss is equal to (360-350)/400 * 10=0.25 (BTC).
You should know that the 796 platform does not involve any legal currency transactions. All transactions are settled in cryptocurrency (Bitcoin or Litcoin)Subject matter(Bitcoin or Lite coin) price is calculated in US dollars, so the actual profit and loss originally calculated in US dollars should be converted into cryptocurrency.In the above example, the floating profit and loss calculated in US dollars=(latest transaction price - weighted average price) * positions=(360 － 350) * 10=100 (US dollars). Divide 100 by the market dynamic coefficient to get the actual profit and loss calculated in cryptocurrency.Therefore, the market dynamic coefficient is actually equivalent to a benchmarkMonetary Value, that is, each>cryptocurrencyReference price(USD).
How to determine the market dynamic coefficient?
Market dynamic coefficient is equal to last weekSettlement priceThe highest value of the price range (USD).For BTC contracts, if the settlement price last week was 380 (in the price range of 300~400), the market dynamic coefficient would be 400.For the determination of the market dynamic coefficient of the two contracts, please refer to Help>Virtual commodityBTC contract weekly delivery contract leverage table and LTC contract weekly delivery contract leverage table in the pledge barter rules.Since the system makes settlement once a week, the market dynamic coefficient is refreshed once a week. In other words, its validity period is one week.
Why do we choose the market dynamic coefficient like this?
Why should the market dynamic coefficient be taken as last weekSettlement priceWhat about the highest value of the price range, not the lowest value or the latest transaction price?In general, this is to make the profit and loss conversion (dollar conversion>cryptocurrency) of the entire 796 platform unifiedReference StandardsSo as to maintain the stability of platform transaction profit and loss calculation.However, its significance goes beyond that.The highest value of the price range where the settlement price is located last week is a fixed integer. Choosing it as the market dynamic coefficient can ensure the stability of the 100% profit and loss fluctuation value, so that there is a fixed reference for the break out price.Because 100% profit and loss fluctuation value=market dynamic coefficient * required initial transaction guarantee ratio, if the market dynamic coefficient is 400 and the initial transaction guarantee ratio is 10%, then the 100% profit and loss fluctuation value is equal to 40 (US dollars), and the open position price=opening price ± 100% profit and loss fluctuation value.We know that the latest transaction price is always changing. If it is taken as the market dynamic coefficient, the stability andBalanceThe fluctuation value of 100% profit and loss is directly proportional to the market dynamic coefficient. The constant fluctuation of the market dynamic coefficient will make the fluctuation value of 100% profit and loss jump with it, which makes it difficult to determine the price of the position.If the lowest value of the price range of the last settlement price is selected as the market dynamic coefficient, the profit and loss formuladenominatorIt is obviously underestimated, making the profit and loss calculation unreasonably enlarged, which is not conducive to maintaining the stability of platform transactions.
Contract trading - dynamic price limit mechanism Claimant institution: 796 Exchange Dynamic Price Limit ('DPL ') mechanism is used to resist extremePrice volatilityAnd prevent people from manipulating prices maliciously.
buyMultiple openingandEmpty positionClosing position belongs tobuy order That is, "pay the bill";Short selling and multi position closing belong tosell order , that is, "sales order".When placing an order (opening or closing a position), the system will set a ceiling on the purchase price of the "buy order" and set a ceiling on the purchase price of the "sell order"Selling priceLower limits are set, which are:price ceiling(BEC), Sales Orderfloor price」(AEF)。
It should be noted that in the event of a stop loss or an open position, the unit price on the shelf submitted by the system for the closing of the corresponding position is also subject to the dynamic price limit mechanism.
Note that "BEC" and "AEF" in the traditional contract marketPrice limit"(LimitMove) mechanism is different."Limit of fluctuation" refers tostock exchangeTo suppress excessSpeculationTo prevent excessive sharp rise and fall of the market, and stipulate that the securities trading price of the current day is the previous one in the daily tradingDaily closing priceThe range of fluctuation on the basis of.The upper limit of price increase on that day isCeiling board, the lower limit of price decline islimit down。BEC and AEF areUnidirectionalRestrictive contractHanging orderHowever, 796 Exchange will not prevent the orders already listed in the order book from matching and trading outside the price limit line.
Weekly contract andQuarterly contractThere are some differences in the dynamic price limit mechanism of.
「 Index moving value 」=「 Market dynamic coefficient 」/10
For high contract or high index, the system selects the lower value of the two as the "buy order ceiling" (BEC).
For low contract price or low index price, the system selects the higher value of the two as the AEF.
When opening a long position or closing a short position (i.e. placing a purchase order):
For weekly contracts, contract high="buyBenchmark price"+80%" Micro movement value "
For quarterly contracts, the contract high level="buying base price"+"micro moving value"
The "benchmark purchase price" shall be the highest of all transaction prices during the first 60~120 seconds;
If there is no contract transaction in the first 60~120 seconds, the highest transaction price in the first 120~180 seconds shall be taken;
If there is no transaction within the first 120~180 seconds, the last transaction price 180 seconds ago shall be taken.
When opening a short position or closing a multi position (i.e. placing a sales order):
For weekly contracts, the contract low point="base selling price" - 80% "micro moving value"
For quarterly contracts, the contract low point="benchmark selling price" - "micro moving value"
The "benchmark selling price" shall be the lowest of all transaction prices during the first 60~120 seconds;
If there is no contract transaction in the first 60~120 seconds, the lowest transaction price in the first 120~180 seconds shall be taken;
If there is no transaction within the first 120~180 seconds, the last transaction price 180 seconds ago shall be taken.
Micro moving value, index moving value, buying and selling benchmark price and the latest index value all affect the dynamic price limit mechanism of our system.Since the benchmark price and the latest value of the index are changing all the time, the "buy order ceiling" and "sell order ceiling" are also changing at any time.
The "market dynamic coefficient" of quarterly contracts is equal to the highest value of all price ranges of the settlement price of the previous quarter.However, since quarterly contracts are new products, from December 12, 2014, when the quarterly contract function was launched to the first settlement date (March 1, 2015), the "market dynamic coefficient" corresponding to quarterly contracts was unified as the "market dynamic coefficient" corresponding to BTC weekly contracts when they were launched, that is, fixed at 400
For the value of Market Dynamic Coefficient (MDC), please refer to the BTC contract weekly delivery contract leverage table and LTC contract weekly delivery contract leverage table in Help>Virtual Commodity Pledge Barter Rules.
Contractual transactions-Counterparty riskWith the assessment fund claiming institution: 796 ExchangeMarket situationIn case of major changes, if the initial transaction guarantee is occupied by the holding position and the transaction direction is opposite to the market trendLeverage effect, it is easy to break positions (also called:Compulsory liquidation）。
The user may have such a question in the transaction: "I have held positions and am making profits, while the counterpartyLoss amountWill the profit of my position be affected after the position explosion to a certain extent?"
The answer is no.Even if the counterparty breaks out, the profit-making party can still continue to earn more than 100%.
The user will only lose the transaction guarantee occupied by the position after the position explosion, and the position amount of the position will be cleared.At the same time, the system will automatically put the position in the market at a unit price that is more unfavorable than the open position price to wait for closing (reverse closing, see the open position and stop loss rules for details). Before the transaction is fully closed, 796 Exchange will temporarily hold the position as the counterparty of the profit maker to ensure the balance of the number of multiple positions and short positions in the market.
"Is it fair to do so?"
796 Exchange provides traders with the convenience that the loss value is close to - 100% to trigger a position explosion. When everyone enjoys this benefit every week, then naturally when there is a systematic loss (the position explosion taken over by the systemSingle hangingEnter the market, such asSettlement dateIf the transaction is not completed, it will result in a systematic loss). It is also fair to apportion the weekly net profit in proportion;In this way, the exchange will not have the risk of bankruptcy.The flat surface of the panel ensuresprice steadiness, cut off the possibility of a series of position explosions!
An important principle of 796 Exchange is that 796 only provides transaction matching services among investors, and does not participate in the transaction itself. Therefore, an investor's profit must be the loss of the counterparty.In other words, in the same trading contract period, the net profit of all accounts should be equal to that of all accountsNet loss。However, due to the position explosion in individual accounts, the long and short positions may be out of balance.In order to maintain balance, the 796 Exchange system will temporarily hold the position after the position explosion, waiting for the matching transaction to realize the closing position.If unfortunately, at the time of system settlement on Saturday, there is no match with the counterparty, and the position cannot be closed naturally, then the 796 Exchange will hold the position to participate in the settlement, resulting in a loss temporarily held by the system, namely "System AssumedCounterpartyLoss" (SACL).
In order to guard against the risk of systematic loss sharing, 796 Exchange has specially launched an important mechanism of "allocation fund" and improved the rules of position explosion.The "allocation fund" is directly linked to the "out of position premium" because it is directlySource of fundsIt is the surplus of "break out premium" (after deducting the loss caused by the system's reverse position closing).The purpose of the "Allocation Fund" is to cover the "system losses".The "system loss" generated during settlement will be filled by the "allocation fund" in priority. In case the balance of the "allocation fund" is not enough to cover all the "system losses", it will be shared by all accounts with net profits in the contract period in proportion.
Under the current mechanism, the system can take over the position and reverse close the position significantly after the position is brokenTurnover rate(that is, greatly reduce the probability of generating systematic losses), and the "allocation fund" can largely fill the gap betweenPrice fluctuationThe combination of the two can reduce the risk of "system loss" allocation to a very low level.In addition, in order to rapidly replenish funds to the "assessed fund" in the early stage to improve the mechanism, 796 Exchange plans to inject 100BTC into it every week before the end of 2014.
We can useArithmeticTo understand the above mechanism.After weekly settlement,
Net profit of all accounts=net loss of all accounts+SACL
If the balance of the "allocation fund" is greater than the system loss (SACL), the profit account does not need to allocate any "system loss".
Contract transaction order matching mode Claiming institution: 796 Exchange 796 Exchange only provideslimit order LimitOrder matching mode instead of providingmarket order MarketOrder matching mode.In other words, the system only allows each order to be matched and closed at its pre specified price limit order or a more favorable price;There will be absolutely no possible negative direction in the matching of market price consignment ordersSlip point(NegativeSlippage)。Specifically, the sales order (short opening or long closing)Synthesis and cross valenceWill only be greater than or equal to its selling price,checkThe combined transaction price (buy long positions or sell short positions) will only be less than or equal to the purchase price.
Progressive and passive orders
Each successful transaction will involve two limited price orders: "aggressive order" and "limited price order".How to distinguish between "aggressive orders" and "passive orders"?
In the process of transaction matching, for the sake of absolute fairness, there is only one order book ("Order Book")Order processingPort,Single threadThe local department receives each order that is entrusted to be put in.Physically speaking, there will never be any entrusted pending order that is the same asOne timeEnter in the Order Book.Every order that has been matched and closed will be matched early and late, that is, one order and another order that appeared earlier in the order book will be matched successfully and then closed.Earlier orders are called PassiveOrders (Makers);Late orders are called Aggressive Orders (Takers).
An "aggressive order" will give priority to match with the "passive order" with the most favorable price. If the number of "aggressive orders" is greater than the number of passive orders, the system will split the "aggressive order" into two parts. The unfinished part will match with the next order with the most favorable price. The above process will continue to repeat until the whole "aggressive order"All "passive orders" that have been completed or can be matched with have been matched.When there are two or more "passive orders" with the same price, "progressive orders" will give priority to the "passive orders" entered into the order book.For example, see the following table: 3
The table above shows a series of sales orders intercepted from the order book, arranged from low to high selling prices.If there is a purchase order with a purchase price of 385 and a quantity of 100 in the market, the order will be matched with the sales order above first, that is, the purchase order with a purchase price of 384.30 will be closed first, then the purchase order with a purchase price of 384.48 will be closed, and so on, until the whole purchase order is closed or all sales orders with a purchase price of 385 or more are closed.When the above purchase order and the order with the selling price of 385 are completed, there is still 22.12 volume left. This part of the order is expected to be closed again after another order with the selling price less than or equal to 385 appears in the market.DelayinMarginAccountReconciliation
It is particularly important to note that after all split parts of a closing order are matched, the system will reconcile the profit and loss of the order, and then record itMargin accountMedium.Therefore, the split orders that are matched first will be settled later.In addition, even if the whole transaction is completed at a single price, there will be a delay in settlement for "passive orders" and "peace positions".Therefore, if the user wants to let some of the orders split out during matchmaking be closed or closed first to increase the balance of the transaction guarantee account in a short time, so as to automatically add transaction guarantees to prevent the position from exploding, this practice will have certain risks.It is recommended that the user reserve sufficient balance in the transaction guarantee account.
Contract trading - open position and stop loss rules Claiming institution: 796 Exchange's open position rules
Weekly contract position explosion rules
For multi warehouse:
Open position price="weighted average price" - "100% profit and loss fluctuation"+50% "micro moving value"
According to the current rules, the profit/loss ratio of the position explosioncritical pointNot "- 100%".Based on the burst price, we can calculate: 4
Initial transaction guarantee ratio triggers the break out profit/loss ratio
2% (BTC only) - 75% - 25%
5% -90% -10%
10% -95% -5%
20% -97.5% -2.5%
When the guaranteed ratio of the initial transaction is 2%, when the profit/loss ratio reaches "- 75%", the position explosion will be triggered;
When the guaranteed ratio of the initial transaction is 5%, when the profit/loss ratio reaches "- 90%", the position explosion will be triggered;
When the guaranteed ratio of the initial transaction is 10%, when the profit/loss ratio reaches "- 95%", the position explosion will be triggered;
When the guaranteed ratio of the initial transaction is 20%, the break out will be triggered when the profit/loss ratio reaches "- 97.5%".
The user will lose all the positions after a position explosionTrade Kicker 。Theoretically, the transaction guarantee balance of the corresponding position when the position explosion is triggered="position" × 0.5%, and this part of the transaction guarantee balance will be collected by the system as the "position explosion premium" forCompensation systemThe losses caused by the reverse closing of the position with an explosion (the closing of the position with an order at a price more unfavorable to the explosion price) and the system losses caused by the final settlement of the week.For the description of "Explosion Premium", please click Explosion Premium.
After the position explosion, the system takes over the user's position and lists the order according to the default unit price to wait for the transaction.
For multi warehouse, the default unit price="weighted average price" - "100% profit and loss fluctuation"="break out price - 50%" micro moving value "
For short positions, the default unit price="weighted average price"+"100% profit and loss fluctuation"="open position price+50%" micro moving value "
Example 1:
There is a multi position whose "initial transaction guarantee ratio" is 10%, its "weighted average price" is 380, the "market dynamic coefficient" is 400, and the "position" is 10
"100% profit and loss fluctuation"="market dynamic coefficient"/10=40, "micro movement value"="market dynamic coefficient"/100=4, then
Open position price="weighted average price" - "100% profit and loss fluctuation"+"50%" micro moving value "=380-40+50% × 4=342
Then, after taking over the position, the system will immediately put the default unit price="weighted average price" - "100% profit and loss fluctuation"=380-40=340 into the market and wait for closing the position.
What are the results of the open position after it is put into the market?
1、 If the position is just closed at the linked unit price, the system will break even, that is, the loss generated by the system's closing is equal to the "break out premium".
In example 1, after the system takes over an open position, it will be linked to the market at the default linked unit price (340). If the position just closes at the linked unit price of 340, then the "system closing loss"=(342-340) ÷ 400 × 10=0.05, and the "opening premium"=10 × 0.5%=0.05, that is, the "system closing loss"="opening premium", and the system will break even.
2、 If it is better than closing the position with unit price, then
Premium surplus generated by the system="out of position premium" - "system closing loss"
In the above example, if the position is closed at 341, the "system closing loss"=(342-341) ÷ 400 × 10=0.025, then
The premium surplus generated by the system="break out premium" - closing loss=0.05-0.025=0.025, and the 0.025 here will enter the "allocation fund" to make up for the system loss generated by weekly settlement.
3、 If the closing position fails to be realized, the losses arising from the weekly settlement of the corresponding position shall be included in the "system losses".
In the above example, if the open position taken over by the system cannot be closed after entering the market at a unit price of 340, that ismarket valueOnce it drops below 340, there has been no rebound. If the settlement price at the final weekly settlement is 325, because the system holdsCost priceIf it is 342 (out of position price), then the final "system loss" of the position=(342-325) ÷ 400 × 10=0.425, and the "out of position premium" of 0.05 of the position will all be included in the "allocation fund".In the whole process, the actual loss caused by the position explosion to the system is=0.425-0.05=0.375.
Note: The system linked unit price of the stock break is also subject to the "dynamic price limit mechanism".In the above example, theoretically, the system listing unit price=340, but if it coincides with the time when the "minimum price allowed for short selling"=340.5, then the system's actual listing unit price can only be adjusted to 340.5.
Rules for position explosion of quarterly contracts
To meet the long-term needs of usersInvestment demand796 specially launched the "BTC quarterly contract", that is, the contract that is settled only once a quarter.
Due to the poor liquidity of quarterly contractsTransaction riskThe leverage provided by quarterly contracts will be less and lower than that provided by weekly contracts. There are only two types of "initial transaction guarantee matching": 100% and 20% (1 and 5 times leverage).Moreover, 100% of the initial transaction guaranteed matching positions are exempt from "contracts"Service Charge」。
For multi warehouse:
Open position price="weighted average price" - "100% profit and loss fluctuation"+200% "micro moving value"
The corresponding relationship between the break out profit/loss ratio of quarterly contracts and the "initial transaction guarantee ratio" is as follows: 5
Initial transaction guarantee ratio triggers the break out profit/loss ratio
20% -90% -10%
100% -98% -2%
When the guaranteed ratio of the initial transaction is 20%, when the profit/loss ratio reaches "- 90%", the position explosion will be triggered;
When the guaranteed ratio of the initial transaction is 100%, when the profit/loss ratio reaches "- 98%", the position explosion will be triggered.
The user will lose all the trading margins of the position after the position is exploded.When the quarterly contract triggers the position explosion, the transaction guarantee balance of the corresponding position="position volume" × 2%, and this part of the transaction guarantee balance will be regarded as "Circulation riska surcharge"It is collected by the system to compensate for the losses arising from the reverse closing of the positions with the system as an open position (closing the positions at a price that is more unfavorable than the open position price) and to finally fill the system losses arising from the quarterly settlement.You should know that the 796 Exchange will bear all the system losses arising from quarterly contracts, rather than share the profit account in proportion.
For the description of "circulation risk surcharge", please click: quarterly contract circulation risk surcharge.
Low of quarterly contractLeveraged transactions(1 times and 5 times), which determines that the possibility of a position explosion in quarterly contracts is very low.For example, when the market dynamic coefficient is 400, the guarantee ratio of the initial transaction is 100% for the quarterly contract, and when the latest transaction price moves in the opposite direction of the weighted average price by nearly 400Beautiful sabreIt is almost impossible that a position explosion will occur only when the position is closed;For a quarterly contract with an initial transaction guarantee ratio of 20%, when the latest transaction price moves in the opposite direction of the weighted average price by nearly 80%, a position explosion will occur, which is also very rare.
After the quarterly contract is out of position, the system takes over the user's position and places an order to close the position according to the "purchase order ceiling price" (for short positions) or "sales order ceiling price" (for multi positions), and the system's listing unit price will fluctuate with the real-time "purchase order ceiling price" or "sales order ceiling price", but its floating range is limited. The system closing of multi positions has a minimum listing unit price,There is a maximum unit price for system closing of empty positions, as follows:
For multiple positions, the lowest unit price="weighted average price" - "100% profit and loss fluctuation"="break out price - 200%" micro moving value "
For short positions, the maximum unit price="weighted average price"+"100% profit and loss fluctuation"="open position price+200%" micro moving value "
Stop loss rules
The stop loss mode of 796 Exchange is an innovation in the financial industry.The user can manually set two prices for any position he holds: "stop loss trigger price" and "stop loss unit price" toPrecontrolPotential loss risk or protectionUnrealized profits。When the "latest transaction price" reaches or exceeds the "stop loss trigger price", the system will automatically put the stop loss position in the market with the "stop loss unit price" for closing.For example, the user sets the "Stop Loss Trigger Price" and "Stop Loss Unit Price" of a multi position to 350 and 349 respectively. When the "Latest Transaction Price" ≤ 350, the stop loss will be triggered, and the system will automatically set the stop loss of 349close rate Hanging order;Conversely, if the user sets the "Stop Loss Trigger Price" and the "Stop Loss Unit Price" of a short position to 350 and 351 respectively, the stop loss will be triggered when the "Latest Transaction Price" ≥ 350, and the system will automatically list the position at the 351 closing price.
Therefore, stop loss is actually equivalent to a conditional position closing, that is, the user's position closing mandate will take effect immediately only after meeting its preset conditions.Specifically, when the "latest transaction price" reaches the "stop loss trigger price", it is the stop loss trigger condition, and the "stop loss unit price" is the closing unit price when the above closing order takes effect.As for whether the position triggered by the stop loss can be successfully closed, it depends on the contract in the marketPrice quotationThe price difference between the stop loss trigger price and the stop loss unit price set by the user.Generally speaking, the greater the price difference between the "stop loss trigger price" and the "stop loss linked unit price", the higher the success rate of stop loss closing, but at the same time, the greater the loss the user will suffer.Therefore, the user should reasonably set the "stop loss trigger price" and "stop loss linked unit price" to ensure a high enough success rate of stop loss closing andLoss controlIn an affordable range, or to maintain a good balance between the two.
Note that the actual unit price of the stop loss is also subject to the "dynamic price limit mechanism".Generally, the actual unit price of stop loss is equal to the "stop loss unit price".However, there are exceptions.For multiple positions, if the "minimum price allowed for short selling" at the moment of stop loss triggering is greater than the "stop loss unit price", the actual unit price of the stop loss position is the "minimum price allowed for short selling";For short positions, if the "maximum limit price for buying too much" is less than the "stop loss unit price" at the moment of stop loss trigger, the actual unit price for the stop loss position is the "maximum limit price for buying too much".
Note: Stop loss cannot be set for positions where the "initial transaction guarantee ratio" is 2%.Once the stop loss set for a position is triggered, all existing closing orders for the position will be cancelled.
The setting of "stop loss trigger price" and "stop loss linked unit price" has certain limits, as follows:
For multi warehouse,
Open position price+"micro moving value" ≤ "stop loss trigger price" ≤ "latest transaction price" – 50% "micro moving value"
Open position price+50% 「 micro movement value 」≤ 「 stop loss unit price 」≤ 「 stop loss trigger price 」
For short positions,
"Latest transaction price"+50% "Micro movement value" ≤ stop loss trigger price ≤ open position price - "Micro movement value"
"Stop loss trigger price" ≤ "Stop loss linked unit price" ≤ position breaking price – 50% "micro moving value"
Note: The "latest transaction price" here refers to the "latest transaction price" at the moment when the stop loss price is set.
Example 2:
The situation of one multi warehouse is as follows:
[Weighted average price]=350 USD
[Latest transaction price]=345USD
「 Market dynamic coefficient 」=400
「 Micro movement value 」=market dynamic coefficient ÷ 100=4
「 100% profit and loss fluctuation value 」=「 market dynamic coefficient 」 ÷ 10=40
be
Explosion price+50% 「 micro movement value 」
="Weighted average price" - "100% profit and loss fluctuation" value+50% "micro movement value"+"micro movement value"
=350–40+50%×4+4
=316
That is, 316USD is the lower limit set for the Stop Loss Trigger Price.
Table 1
The upper limit of "stop loss trigger price"="latest transaction price" - 50% "micro movement value"=345 – 2=343
two
Counterparty risk and allocation fund
Order matching mode
three
Stop loss rules for position explosion
Announce
edit
four
five
Term claiming organization - 796 Exchange 796 Exchange was founded in June 2013 with 796.comBitcoin futures（T+0EmptyTwo-way barter weekly settlement contract),volumeAccording to the top three in the whole network, take the lead in making it publicCold walletThe assets of the top 100 users of the address and platform are transparent and verifiable;The first is the position explosion caused by high leveragePremium fundPreventive assessment mechanism;The first social cryptocurrency trading fund was created to solve the problem of copying transactions affected by the market depth (market shock).
