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What Does “Full Position and Hammering Position” Mean in Contracts (Contract Margin Call)

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What Does \”Full Position and Hammering Position\” Mean in Contracts? In contract

What Does Full Position and Hammering Position Mean in Contracts (Contract Margin Call)

What Does “Full Position and Hammering Position” Mean in Contracts?

In contracts, the leverage long and short ratio is 1:0.5 (long one lot, close short two lots), and vice versa for short positions. This can reduce costs and increase capital utilization. At the same time, the risk of leverage is also very low. For example, if there is a significant market fluctuation when placing an order, it may result in losses or inability to profit. Therefore, the full position strategy in contracts is also called “full position hammering”. Full position hammering refers to delivering and settling all positions in a certain proportion. When all positions are added with the same quantity, it will cause losses and affect the overall market price. Full position hammering is also known as the “trading without restrictions” trading mode, which allows investors to freely switch between multiple currencies. There are mainly two types of strategies: one is to open short positions with full position, and the other is to partially close positions in batches to increase profits. Another type is to open long positions in both directions, which avoids high-frequency trading and increases the probability of margin calls. The third type is full position canceling, which can control the positions of large holders and reduce the risks of major players.

Contract Margin Call

Golden Analysis: According to OKEx data monitoring, as of now, the ratio of long and short positions in Bitfinex exchange’s BTC in the past 24 hours is 60%/40%; in Huobi’s quarterly contract BTC perpetual elite accounts, the average long position ratio is 15.38%, and the average short position ratio is 19.42%, with a short position advantage. According to the market, after a significant volatility over the weekend, BTC liquidated across the board yesterday. Among them, OKEX’s BTC long positions were liquidated twice, with a total liquidation amount of $57 million.

From the market, the Bitcoin market is in a high-level volatile zone in an upward trend, but with the overnight plunge, some investors’ liquidation behavior occurred, and the spot price showed a significant downward trend. There will be some retracement in the short-term rise, but if it can stabilize above $47,000, it can consider some rebound recovery.

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