2025 Cryptocurrency Contract 'Slang' Revealed, Newbies Instantly Become Experts!

In contract trading, these terms are key to understanding the market!

1. Easy Learning of Account Management Terms

1️⃣

Empty Position: The account has no futures contracts, all funds in cash, position 0%, purely observing.

2️⃣

Establishing a Position: First time buying futures contracts, generally using 10%-20% of funds to test the waters.

3️⃣

Light Position: The value of the contract accounts for less than 50% of total funds, flexible funds, low risk.

4️⃣

Half Position: Funds and contract value each account for half, position 50%.

5️⃣

Heavy Position: Over 50% of funds invested in contracts, little account funds, high risk.

6️⃣

Full Position: All funds used to buy contracts, position 100%, extremely high risk, proceed with caution.

2. Interpretation of Trading Operations Terms

1️⃣

Opening a Position: First time buying or selling a contract. Buying to open a position (going long) predicts a price increase, buying first then selling; selling to open a position (going short) predicts a price decrease, selling first then buying.

2️⃣

Closing a Position: Selling (buying to open a position) or buying back (selling to open a position) contracts, ending the trade.

3️⃣

Increasing a Position: Additional buying when the contract price increases, increasing stakes.

4️⃣

Adding to a Position: Buying when the contract price decreases, lowering costs.

5️⃣

Reducing a Position: Selling part of the contracts, lowering position to control risk.

6️⃣

Clearing a Position: Selling all contracts regardless of profit or loss to exit the market.

3. In-Depth Analysis of Advanced Terms

1️⃣

Locking a Position (Hedging): Simultaneously opening long and short positions, locking in risk or profit.

2️⃣

Rolling Over a Position: Before contract expiration, switching to a longer-term contract to avoid physical delivery.

3️⃣

Squeezing a Position: Large players manipulate the market, forcing opponents to close positions unfavorably, newbies should stay away.

4️⃣

Liquidation: Losses result in insufficient margin, being forcibly closed out.

5️⃣

Take Profit: When the price reaches the expected target, timely selling to secure profits.

6️⃣

Stop Loss: Selling when the price drops to a certain level to prevent larger losses.