Let me talk about a feasible plan. If you can execute it, making 1 million from a few thousand is achievable.
Let me share my method with you: quickly turning a few thousand into 100,000, the only way: (rolling positions) +
Step 1: Initially convert your several thousand into U and divide it into three parts!
Step 2: Do contracts three times +, leverage 100, position size 60% each time, full position, just trade Bitcoin or Ethereum, operation time: evening.
Between 9:30 PM and 4 AM!
change significantly from the spot price.
Step 4: Continue with the operations from the previous day, dividing the principal into three parts, and repeat the same operations three times!
1. Discuss the essence of price. Assuming there is a trading pair tokenA/tokenB, how is the price of tokenA determined?
Price is the result of the supply and demand relationship. Price is the ratio of liquidity (quantity) between A and B, where A and B are two parts of a liquidity pool.
The constant product formula for trading exchange rates x*y=k, therefore, when a large amount of A token is purchased, it will lead to a shortage of A tokens and increase the price.
The supply and demand relationship determines the price of token A. The first is the AB trading pair, and the liquidity operation determines the initial trading exchange rate.
If this exchange rate is too high or too low compared to the market, arbitrage traders will quickly eliminate the gap until the market reaches a normal level.
2. Discuss the relationship between liquidity and price.
Liquidity itself has no relation to price; the only factor that affects price is the supply and demand relationship. Sufficient liquidity can reflect the market after
Sufficient trading results from fierce competition for prices, while for varieties with low liquidity, prices may deviate significantly from actual value.
3. Describe in your own words what a limit order and a market order are.
A limit order means that the user must buy or sell at a specified price.
If BTC's price is 6500 USD, and the investor wants to buy at 6300 USD, then a buy order of 6300 USD needs to be submitted.
of 6300 USD, the order is entered so that once its price reaches 6300 USD, the order has a chance to be executed; if the price is below 6300 USD, the order
will definitely be fully executed, and the average execution price is usually lower than 6300 USD.
A market order will execute the order at the current price of the virtual currency. If the latest price of BTC is 6500 USD, then the execution price
are likely at this price or close to this price.
4. Describe in your own words what isolated positions and full positions are.
[Full position] means that all available balances in the account can serve as collateral to avoid forced liquidation. 'Going all in,' 'all in.'
It's all full positions. The advantage of this model is: as long as the leverage is moderate, the possibility of liquidation is very low, so it is often used for hedging and quantitative strategies.
Trading.
[Isolated] When a user's position is liquidated, only the margin amount of that position is lost, and it will not affect other funds in the contract account.
In isolated position mode, the margin is the maximum loss for the user.
For example, you have 10 USDT in your contract account, and when opening a position, you put in 1 USDT, the contract account still has 9 USDT available.
In the case of isolated positions, at most you can use the 1 USDT invested when opening a position; the remaining 9 USDT is unaffected; you can limit risks.
Using leverage to magnify your returns. In the case of full positions, if you initially invest 1 USDT, when the margin is insufficient, it will automatically be taken from the contract account.
Transfer USDT from the user's 9 USDT to the contract position to avoid forced liquidation. This can make your contract position more resistant to short-term market fluctuations.
Profit changes.
5. Is the contract market settled separately from the spot market or together?
Settled separately. Like spot trading, it is one market, while contracts are another market. Trading with spot will not affect the contract market.
So this is separate.
6. What is the funding rate in contracts? Why design a funding rate? If the funding rate is 0.02%, then it is shorts paying longs.
Is it the long side giving money to the short side? Does this represent that the contract price is higher or lower than the spot price?
The funding rate is the price balancing mechanism for perpetual contracts, referring to the difference between the market price of perpetual contracts and spot prices.
The price difference between them, the regular fees paid to long or short traders.
Because perpetual contracts do not have an expiry date like term contracts, when the price of a perpetual contract deviates from the spot price, most of the current
Exchanges use funding rates to adjust contract prices to avoid significant deviations from spot prices. When the market trend is bullish,
The funding rate is positive and will rise over time. In this case, long traders in perpetual contracts will pay funding fees to
traders on the other side. Conversely, when the market is bearish, the funding rate is negative, at this time, it is the short traders in perpetual trading who pay the long traders.
will pay funding fees.
0.02% Longs pay shorts money, which means the contract price is higher than the spot price.
7. Shorting + what are essentially the two operations combined? Why short?
First, borrow high and sell, and then buy back when it drops, so you buy in at a low price and sell at a high price, only it's
Sell first, buy later.
To make money. Shorting is a way to profit from a decline in price. Through research/analysis, if there are reasons to be bearish, if
Shorting an asset means profiting from a decline in price. Generally speaking, the lower the price drops, the greater the profit in the trade.
For example, if the current price of Bitcoin is $60,000, and I predict that it will drop to $58,000 tomorrow or in the next few days, I would buy down, which means shorting, if
has not dropped but risen, resulting in losses for me.
8. If the price of Ethereum is 1200, and you short the contract at 1x, with a margin of 2600, at what price of Ethereum will you be liquidated?
1x short, a 100% increase (1/1) will lead to liquidation at 2400.
9. If the price of Ethereum is 1200, and you are long 10x on the contract with a margin of 2600, at what price of Ethereum will you be liquidated?
10x long, a 10% drop (1/10) will lead to liquidation, 1080 drops 1/N.
10. What is the initial margin used for?
The initial margin is the minimum margin required for the user to open a position. For example, if the initial margin is set to 10%, and the user opens at a price
For a contract worth $1,000, the initial margin required is $100, meaning the user has obtained 10x leverage. If the available
If the margin is less than $100, opening a position will not be possible.
11. What is the relationship between margin rate and leverage?
The leverage ratio = 1/margin rate. The leverage ratio is inversely proportional to the margin rate. For example, if you want to trade
For a standard lot of USD/JPY, your account would require $100,000. But the margin requirement is only 1%, so you only need to have that amount in your account.
deposited $1,000. The leverage provided for this trade is 100:1.
12. How to explain the term 'anti-position+' hinting (initial margin, maintenance margin)
Hanging a position simply means the unwillingness to close and take a loss, the reason: unwilling to admit their mistakes, unwilling to lose capital. So it is necessary to
To hold positions, waiting until they can say, 'I was right,' feeling like they have defeated the market.
13. How to explain the term liquidation, hinting (initial margin, maintenance margin) what is liquidation?
Liquidation occurs when your available margin is 0; without available margin, you cannot trade. Trading liquidation means losses exceed your
The available funds after removing the margin from the account. The remaining funds after forced liquidation is the total funds minus your losses, usually still leaving some.
14. Which is used to settle liquidation, the mark price or the latest price, what is the difference between mark price and latest price, and why is there a mark price?
Price
14. Which is used to settle liquidation, the mark price or the latest price, what is the difference between mark price and latest price, and why is there a mark price?
Price
Mark price. The mark price is used to calculate the user's unrealized profits and losses, the expected trigger liquidation price, and to compute the user's funding fees.
Its purpose is to improve the stability of the contract market and reduce unnecessary liquidations during abnormal market fluctuations. The latest market price refers to the platform's
The current market price. The latest market price is anchored to the spot price due to the funding fee mechanism, which is why the latest market price does not
The reason for the significant deviation of the spot market price.
15. Describe in your own words what unrealized profits and losses are.
Unrealized profits and losses refer to the profits or losses held in your current open orders.... Your current active trades. This equals if your positions
Any open orders will immediately close, realizing profits or losses. Unrealized profits and losses are also known as 'floating profits and losses' because your position
Still in an open position, so this value keeps changing. If you have open orders, your unrealized profits and losses will change with the current market price.
Continuous fluctuation (or 'floating'. For example, if you currently have unrealized profits, if the price goes against you, the unrealized profits
It may turn into unrealized losses.
16. Suppose your initial margin is 1000 USDT, the funding rate is 0.1%, and your leverage is 10x long, settling three times a day.
How much funding fee do you need to pay/receive?
1000 USDT * 0.1% * 103 = 30 USDT.
17. Describe in your own words what hedging is.
Because the contract is a two-way trade that allows buying up and down, buying up while also buying down is equivalent to not losing or gaining, which is called hedging.
[Because large losses can lead to liquidation or forced liquidation]
18. Which is less likely to be liquidated, low leverage or high leverage?
It cannot be said that low leverage is more dangerous or high leverage is safer; this is one-sided. The accurate statement is that under equal positions, low leverage can bear
The fluctuations are smaller, and the distance to the liquidation price is closer. As for the choice of leverage, it is more about individual trading systems and habits. Any high
Returns are always accompanied by high risks. Many discussions on contracts emphasize contract profits without mentioning risks, which is quite frightening.
