What is a warehouse by warehouse margin (which is better, warehouse by warehouse margin or full warehouse margin)

What is a margin for each position

What is a margin for each position In traditional financial fields, investors often choose to hold relatively low risk digital assets as collateral for trading. In the current market with high leverage ratios, high margin ratios, and mature hedging tools, investors can use this approach to avoid risks. What is a warehouse by warehouse margin? What is a warehouse by warehouse margin Specifically, it mainly includes two parts: one is the source of funds. Since the value of Bitcoin and Ethereum is fixed and immutable, we call all Cryptocurrency “digital gold”. The second is the deposit (guarantee). For example, when the price of BTC drops below $1, users need to pay a certain amount of margin to obtain assets such as ETH or USDT. The third is liquidity. If the BTC price drops to $20000, investors will no longer be able to buy or sell Bitcoin through any other exchange; Once BTC rises by 300%, more people will participate in long trading Finally, there is the so-called risk reserve (breadth), which means that the holder bears the corresponding losses in the market, but will not cause losses for any reason. Therefore, in most cases, risk control is determined by the shareholders rather than passively providing investment exposure In addition, there is another situation where as Bitcoin continues to grow, more and more institutions are joining in to increase their holdings. According to DeFiPulse data, in 2017, institutional investors held around 5% of the total supply of Bitcoin However, although these two types of investors already hold over $2 billion in assets, their investment share is less than 10%. Therefore, if they believe that Bitcoin has high market volatility and potential returns, these institutions may consider selling their Bitcoin. That means they may not have reason to sell their encryption products in the short term now In addition, due to the increased uncertainty in the futures market, many institutions are creating a new investment target for crypto derivatives. To achieve this, some companies have set their futures contract pricing to 0, thereby reducing the premium for the product and increasing its risk management capabilities. Nevertheless, in the current market environment, there are still many people willing to purchase more BTCs

On the other hand, in the Spot market, many people also use leverage trading and borrowing to earn more profits. For example, on Uniswap, there is a decentralized exchange called Venus This platform allows you to trade any number of wallets with your favorite token – Venus. Then, your token becomes various tokens provided by other protocols. If you want to become a listed company, please apply to you to ensure that your money does not come from a bank account, but from yourself

Which is better, warehouse by warehouse margin or full warehouse margin?

In the market, warehouse by warehouse margin and full warehouse margin are both. Among them, warehouse by warehouse margin and full warehouse margin are contract assets calculated at spot prices without any additional risks Specifically, when the futures market experiences a decline, investors can deposit their positions in margin to close their positions, but due to excessive leverage, they cannot fully close their positions. If the short position exceeds the margin ratio value (i.e. actual loss), funds may be liquidated or transferred to other currencies. Meanwhile, for multi order holders, their principal yield will be higher than the full position margin.

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