1. Margin System Introduction?
The CITEX Margin System means that when trading digital asset contracts, users do not need to pay the total amount of the contract, but to only block a certain percentage of margin according to the total amount of the contract to complete the transactions, of which "a certain percentage" is the initial margin level.
Alice has 100 USDT, assuming the current market price of BTC is 10,000 USDT. If Alice trades in the spot market, the BTC worth 100 USDT is 0.01 BTC.
If Alice conducts contract trading on CITEX, using 100 USDT as a margin and opening leverage of 10 times, he can get BTC worth 1,000 USDT, which is 0.1 BTC. Meanwhile, if Alice opens 100 times leverage, it can get BTC worth 10,000 USDT which is 1 BTC.
2.What are "open positions", "hold positions" and "close positions"?
Opening a position: refers specifically to contract trading. Contract ordering is called opening a position.
Position: A position is held after the order is placed.
Closing a position: It can also be called a liquidation, which means that you can no longer hold all or part of an open order.
3. Open long / Short
If you expect the market to rise, then you Open long. If the market is really rising, it is profitable, otherwise you will lose money. Vice versa.
In the same index contract, users can buy different directions at the same time, that is, they can open long or short for once.
Take BTC / USDT contract (USDT settlement) as an example:
Open long: That is, BTC is expected to rise. Use USDT as a deposit to open long BTC. As long as BTC is higher than the price you bought, you will make a profit in the future..
Open short: BTC is expected to fall. Use USDT as a deposit to open shot BTC. As long as BTC price is lower than the price you sold, you will make a profit in the future.
Leverage provide larger transactions with the same principal. Leverage can amplify benefits and risks. CITEX contract has 100 times leverages.
Take the BTC / USDT contract trading as an example:
BTC / USDT contract trading provides maximum 100 times leverage, 1 USDT is margin, you can Open long or short BTC worth 100 USDT.
Taking 20 times leverage as an example, in order to facilitate intuitive explanation, the following example does not consider transfer fees and overnight fees:
Open Long: BTC price will increase by 1% in the future, and your income will increase by 20% (the direction is right, the gain will be enlarged by 20 times); while if the BTC price drops by 1%, your loss will be 20% (when the direction is wrong, the loss will be enlarged by 20 times) ).
Open short: BTC will fall by 1% next, and your income will increase by 20% (decrease will also make money, and the gain will be magnified by 20 times). ).
High leverage, high yield and high risk, please choose the leverage multiple carefully.
5. Forced Liquidation
After open long or short position, the forced price will be displayed on the position page. This price is an indicator to measure the user's asset risk. When the index price reaches the forced, your position will be forced to close.
Alice opened a position with a leverage of 10 times to open short 2 BTC at BTC = 7340.62 USDT, and the forced price is shown as 7792.87 USDT. That is, when BTC index reaches 7927.87 USDT, the position will be forced to be closed by the system.
6. Stop Profit/Loss
"Stop Profit/Loss" means that the "trigger price" is set in advance, and when latest price reaches trigger price,The position will be closed to help you keep profits or reduce losses. Currently the platform supports "stop Profit/Loss " operations based on the amount or profit.
For example, Alice open long at 6800 USDT, and then set a price to stop profit at 7100 USDT and a stop loss at 6700 USDT. Then, when the index price reaches 7100 USDT, the system closes this order. Similarly, the same order will be closed at 6700 USDT.