2025 Cryptocurrency Contract Trading Terminology Comprehensive Analysis
I. Core Concepts of Position Management
1. Empty Position State: The account does not hold any contract positions, 100% cash reserve
2. Position Building Strategy: Initially invest 10%-20% of funds to establish positions
3. Position Levels:
Light Position: Position account ratio < 50%
Half Position: Position account ratio ≈ 50%
Heavy Position: Position account ratio > 50%
Full Position: 100% of funds invested
II. Basic Trading Instruction Analysis
1. Opening Position Operations:
Buy to Open (Long): Buy when expecting an upward movement
Sell to Open (Short): Sell when expecting a downward movement
2. Closing Mechanism: Settle positions through reverse transactions
3. Position Adjustment:
Add Position: Additional investment when the trend continues
Replenish Position: Average down cost when prices pull back
Reduce Position: Risk control measure
Clear Position: Completely exit the trade
III. Advanced Trading Strategy Detailed Explanation
1. Risk Hedging:
Lock Position: Hold simultaneous bidirectional positions
Move Position: Contract expiration roll-over operation
2. Special Market Behaviors:
Force Liquidation: Large capital manipulation behavior
Forced Liquidation: Margin forced clearance
3. Risk Control Tools:
Take Profit: Pre-set profit target
Stop Loss: Set maximum loss limit
Important Risk Warning
• Contract trading employs a leverage mechanism, which may amplify profits or losses
• It is recommended that beginners start with simulated trading to gradually accumulate experience
• Strictly set take profit and stop loss to control risks for individual trades
• Avoid participating in suspected market manipulation behaviors
Learning Recommendations
1. First master the basics of spot trading
2. Start real trading practice with small capital
3. Establish a complete trading log
4. Continuously pay attention to changes in market liquidity
