I. Currency Trading
There are usually two ways to obtain digital currencies such as BTC, mining and purchasing. Currency trading is a way to buy digital currency.
Currency trading is also known as spot trading, which refers to the purchase of other types of digital currencies by users using a certain digital currency as the unit of valuation. For example, in the BTC/USDT trading pair, users buy and sell BTC with USDT as the pricing unit.
Among the many digital currencies, BTC, ETH, USDT are the most commonly used digital currencies to exchange for other currencies, which forms the BTC, ETH, USDT trading area of the trading platform. The Bibox currency trading main board area is currently divided into four trading areas: BTC, ETH, USDT and BIX (Bibox's platform currency).
II. Margin Trading
Leveraged trading is a supplement to currency trading. Users use their own funds as a margin, and borrow N times the margin from the platform as the principal for investment. Therefore, leverage is also called a margin trading system. In this process, users need to make repayments based on the number of loans, interest rates, and time. The calculation method is simple interest.
Leveraged trading will also be accompanied by the concept of leverage. The 10 times leverage we often say is to magnify your own funds by 10 times to earn income. The higher the leverage, the less margin users need to pay and the higher the profit. In contrast, the risks that need to be taken are correspondingly higher.
Currency transactions only use own funds to operate, you can only buy at a low price first, and then sell at a high price after the currency price rises (that is, go long). Therefore, currency trading will be silent when encountering a bear market.
Compared with currency trading, leveraged trading can not only buy first and then sell, but also sell first and buy: borrow the currency and sell it, and after the currency price drops, buy it back (ie short). So leveraged trading bears can also be profitable.
III. Contract Trading
Contract trading is a kind of financial derivatives, which is a transaction relative to the spot market. Users can determine the ups and downs in futures contract transactions, choose to buy long or sell short contracts, to obtain benefits from price increases or decreases. Like leveraged trading, it can also use leverage multiples to expand returns.
Investors often use contract trading for hedging, that is, buying and selling contracts with the same variety and quantity as the spot, but in the opposite direction, using the profit of one market to make up for the loss of the other market to avoid the uncertain risk brought by price fluctuations in the spot market .
According to different delivery methods, contracts can be divided into perpetual contracts and fixed-term contracts. Perpetual contracts have no expiry date or settlement date. As long as the margin is sufficient, users can hold them forever. The fixed-term contract has a fixed delivery date, such as: current week contract, next week contract and quarterly contract.
Bibox currently provides perpetual contract services, and Bibox perpetual contracts have their own characteristics and rules:
- Using USDT pricing: no need for mutual exchange between various currencies, eliminating the trouble and loss caused by currency exchange;
- Use index prices to anchor liquidation, effectively reducing the risk of liquidation;
- You can freely choose the leverage multiple and the mode of full position and position by position, and the leverage can be adjusted twice after opening a position;
- Settlement at any time, withdrawal at any time: real-time withdrawal after closing the position, the efficiency of capital use is higher;
- Provide contract documentary services, users can choose experienced traders to copy their operations with one click and earn profits easily.