In the world of cryptocurrency futures trading, terminology is your 'passcode'. Mastering it allows you to easily unlock the secrets of the market and transform from a novice to a trading expert in no time! Today, let's unveil the mysteries of these 'slang' terms to help you navigate the world of futures trading smoothly!
I. Account Management Terminology: Easily Control Fund Allocation
• Empty Position Status: No contracts in the account, all funds are cash, with zero position, akin to a bystander waiting for the right moment.
• Initial Position Establishment: The first purchase of a contract, usually using only 10%-20% of funds to test the waters and gauge market conditions.
• Light Position Operation: The contract value accounts for less than 50% of total funds, allowing for flexible capital and controllable risk, suitable for conservative investors.
• Half Position Layout: Capital and contract value each account for half, reaching a 50% position, allowing for both offense and defense.
• Heavy Position Attack: Investing over 50% of funds into a contract, leaving little remaining capital, significantly increasing risk, requiring cautious operation.
• Full Position Bet: Using all funds to buy contracts, reaching a 100% position, with extremely high risk; any misstep could lead to complete loss of capital, so caution is advised.
II. Trading Operation Terminology: Precisely Grasp the Trading Rhythm
• Opening Position: The first buy or sell of a contract, marking the start of trading. If buying to open (going long), it predicts a price increase, buying first and then selling for profit; if selling to open (going short), it predicts a price decrease, selling first and then buying back to close the position.
• Closing Position: Selling (buying to open) or buying back (selling to open) a contract to end the trade and lock in profits or losses.
• Increasing Position: When the contract price rises, buying more contracts to increase stakes and expand profit potential.
• Averaging Down: When the contract price falls, buying more contracts to lower the average cost, preparing for subsequent rebounds.
• Reducing Position: Selling part of the contract to lower the position and control risk, avoiding excessive losses due to market volatility.
• Liquidating All Positions: Regardless of profits or losses, selling all contracts to exit the market and replan investment strategies.
III. Analysis of Advanced Terminology: Unlocking Advanced Trading Strategies
• Locking Position Hedge: Simultaneously opening long and short positions to lock in risks or profits, a sound trading strategy suitable for hedging risks or securing gains.
• Rolling Over Contracts: Before a contract expires, transferring the position to a later contract to avoid physical delivery, suitable for long-term holding strategies.
• Squeeze Trap: Large players manipulate the market to force opponents into unfavorable positions, which is an unfair trading practice that novice investors must avoid.
• Liquidation Risk: When losses lead to insufficient margin, forced liquidation occurs, one of the greatest risks in contract trading that requires strict risk control.
• Taking Profit: When the price rises to the expected target, selling the contract in a timely manner to lock in profits and avoid greed leading to profit loss.
• Stop Loss: When the price drops to a certain level, decisively selling the contract to prevent further losses, which is a key strategy for protecting capital.
Cryptocurrency futures trading is full of opportunities and challenges, but as long as you learn these terms and master trading strategies, you can navigate the market with ease. Remember, enter cautiously and trade rationally to go further in the world of futures trading!
#美联储FOMC会议 #币安LaunchpoolSXT #Strategy增持比特币 #加密市场回调 #BTC走势分析 $SOL