Introduction to the essence of building a contract exchange | Principles and ultimate goal of contract exchange

introduction essence building contract exchange

What is a contract ?
A contract is actually a contract with an exchange , Pay a certain amount of deposit , this paper MYY1003G Organize and release , Only as a reference for project requirements ! There are two kinds of contracts , One is the delivery contract , One is a perpetual contract , A delivery contract has a delivery period , Just like futures , When it comes to delivery time, it will be automatically leveled , There is no time limit to a perpetual contract , The contract is to buy more and buy less , When the market goes up, buy more and make money , When the market goes down, buy short and make money , Then add leverage to trade , Leverage is optional , Different leverage ratios have different risks . In fact, contracts are optimized on the basis of leveraged trading , So that users can better operate the business , Compared with the spot, there is one more buy short contract ( The so-called buy short is to buy down ) The choice of , So it's a little more flexible than spot .
An introduction to the nature of contract trading :
Because the price fluctuation of digital currency is larger than that of traditional market , So from the moment the contract was born , Like traditional futures , With the function of hedging risk to avoid the sharp depreciation of spot assets , So first of all, it's the hedging function . Secondly, due to the inherent leverage function of contract design , It also has a small and broad speculative function , More participants use contracts as leverage , It's a tool for small capital to make big capital , So secondly, it has the nature of speculation .
The ultimate goal of contract trading :
The only contract deal is 2 Objective , The first is set li Value preservation , This is the protection of the stock , The second is speculation , Realize the great increment of wealth .
set li Hedging is relatively simple , Only trade at the turning point of the trend , The number of operations per year is limited , The goal is to keep assets from falling or devaluing .
And speculative profits , It's the intention of most contract traders , The purpose is to be small and broad , Get high returns , The so-called high yield must be accompanied by high risk , So the most important thing is to reduce the risk as much as possible in speculation , Maintain control and Sustainability , To laugh to the end .
Several principles must be adhered to in contract trading
Because of the inherent leverage of contract trading , In operation, we must adhere to the minimum standard of safety and control , Only in this way can we survive and develop in the contract transaction .
1、 For investors hedging cash , The main purpose is to avoid the depreciation risk of currency price falling , The need to hedge with a low margin , So when the trend is down , Billing with medium leverage equivalent coverage , Stop loss is set at the trend reversal point .
2、 For speculators , Stop loss must be synchronized at the time of billing , The use of leverage matches the maximum bearable loss of each order .
3、 Whether hedging or speculation , Billing is only done in a position with a high profit / loss ratio , Reduce invalid operations , Avoid high frequency operation . Have a clear purpose , Plan a deal .

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