Bitcoin Trading: The Maximum Leverage Can Be Up To 5 Times.

As a virtual commodity, leverage pactions are also introduced in the bitcoin trading process, with a maximum leverage of 5 times.

At the same time, there have been doubts about money laundering in special currency pactions.

Abnormal volatility of bitcoin has aroused high attention of regulators.

Following last Friday's central bank's headquarters in Beijing and Shanghai, about three bitcoin trading platforms were responsible, there was news that regulators would discuss the establishment of a third party bitcoin hosting platform to ensure the safety of bitcoin pactions.

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Shoes and hat net learned that the three bitcoin platforms that were interviewed last Friday included "fire money net", "currency line" and "bitcoin China".

However, in January 10th, an insider said, "the platform has not received notification from the third party trustees for the time being."

Zhang Hua, vice president of Lei Ying enterprise, said: "the digital asset trading industry is still in the new stage, and the bitcoin Trading Fund has not yet formed a standardized three party trusteeship system.

I personally expect that there will be substantial regulatory measures in the next two to three years. "

It is worth mentioning that as a virtual commodity, the leverage paction is also introduced in the bitcoin paction process.

In addition, behind the popularity of bitcoin trading, the doubt on money laundering in bitcoin pactions has not been interrupted.

So, what is the truth behind the bitcoin trading capital chain?

Capital allocation is common.

At present, bitcoin leverage pactions are more popular.

In the paction, investors will adopt leveraged pactions, including doing more or less, and the average leverage ratio in the industry is about 3 times.

Specific adjustments will be made based on paction activity and so on.

Zhang Hua told reporters that "in January 5th, bitcoin prices fluctuated sharply, and the whole day was up to 32.55%.

On the same day, some leveraged investors broke out, mainly because of the whole day.

Rapid and violent fluctuations. "

The maximum leverage is about 5 times.

However, the platform will be adjusted according to the paction situation.

On the day of January 5th, the fire money was adjusted by wind control, and the leverage ratio was reduced to 2 times, mainly in order to control the risk of investors.

Nevertheless, some investors have been explode and strong.

The source said.

"Specifically, assuming that the current bitcoin price is 6000 yuan, a user's own funds 6000 yuan, and the market bullish, borrowed 4 times the total amount of funds, a total of 30 thousand yuan to buy 5 bitcoins.

Result

Prices will fall, and when his real assets reach 110% of the platform's lending, the platform will remind users to liquidate or increase the margin.

The above mentioned insider said.

"Therefore, when the user's actual assets reach 110%, the platform will be forced to liquidate and sell its assets at the market price.

The principles are the same as those in other financial markets.

That is to say, according to the price of the user, when the bitcoin price falls to 5280 yuan, if the user does not stop the loss or raise the margin, the platform will be forced to liquidate.

OKCoin currency row network founder and CEO Xu star responded the same day, "our platform's leverage ratio is relatively small, when the price fluctuation is relatively large, we will normally suspend the leveraged business, so our platform's burst users are very few."

Chen Gang, co-founder of Kuwait technology, said: "for the platform, the core risk control is internal management, asset conservation, attention to wind control and liquidation, daily closing, daily reconciliation."

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