For those who just entered the crypto contract world, are you confused by all the jargon as soon as you join the group? Don't worry, today we will break down those confusing terms in the crypto contract world, and after reading this article, you will be able to instantly become an 'insider' and communicate effortlessly with the big shots.

1. Account Position Terminology 🧾🔥🔥🔥

✔Empty Position: There are no futures contracts in the account, all funds are cash, and the position is 0%, just like a bystander, purely observing the market's ups and downs.
✔Establish Position: The first purchase of futures contracts, it is generally recommended to use 10%-20% of funds to test the waters and feel the market's temperature.
✔ Light position: The contract value accounts for less than 50% of the total funds, funds are relatively flexible, and the risk is relatively small, suitable for conservative players.​
✔ Half position: Funds and contract value each account for half, position 50%, in a relatively balanced state.​
✔ Heavy position: More than 50% of the funds are invested in the contract, leaving little funds in the account, higher risk, and operations must be cautious.​
✔ Full position: All funds are invested in the contract, position 100%, this is extremely high risk, do not attempt lightly without strong heart and full confidence!​

II. Trading operation terminology 💹​🔥🔥🔥

✔ Open position: This is the first step in trading, the first purchase or sale of a contract. Buying to open (going long) is predicting that the coin price will rise, buying the contract first, and selling it for profit after the price rises; selling to open (going short) predicts that the coin price will fall, selling the contract first, and then buying it back at a lower price to profit from the difference.​
✔ Close position: This means closing the previously opened position, selling (buying to open) or buying back (selling to open) the contract, ending this transaction, securing profits or stopping losses in time.​
✔ Add position: When the contract price rises and it is believed it can rise further, additional contracts are purchased to increase stakes and strive for more profit.​
✔ Supplement position: When the contract price falls, in order to lower costs, additional contracts are purchased to bring down the average price. However, supplementing positions also has risks, so don't let it lead to greater losses.​
✔ Reduce position: Sell part of the contracts to lower the position and control some risk, securing part of the profit.​
✔ Clear position: Regardless of whether this transaction is profitable or not, sell all contracts completely, thoroughly exit, and observe for a while.​

III. Advanced mysterious terminology ✨​🔥🔥🔥

✔ Lock position (hedging): Simultaneously opening long and short positions, like giving oneself double insurance, locking in risk or profit, but this operation is more difficult and requires a relatively accurate judgment of the market.​
✔ Squeeze position: Large traders manipulate the market with strong financial power, forcing opponents to close positions under unfavorable conditions, which is a nightmare for small traders, so newcomers should try to stay away from such dangerous areas.​
✔ Liquidation: This is the least desirable situation. When losses are severe and margin is insufficient, forced liquidation will occur, turning hard-earned funds into nothing in an instant, so controlling risk is very important!​
✔ Take profit: When the coin price reaches the expected target, sell the contract in time to secure the profit, do not be too greedy.​
✔ Stop loss: When the coin price drops too severely, sell immediately when it reaches a certain level.#新手小白 #小白勇闯币圈