What's the price of the bomb?
In an encrypted currency contract transaction, the warehouse price means that when the market price touches that level, the exchange will force the level of your position to be leveled, because your bond is not sufficient to support the loss of the warehouse position. Understanding the price of the blast is central to risk management in contractual transactions.
How do we calculate the price of the bomb?
The calculation of the price of the blast tank depends primarily on the following factors:
- Opening price: The price you get on the market.
- Leverage multiple: Your position value versus the bond ratio. The higher the leverage, the closer the warehouse price to the opening price.
- Maintenance of the bond rate: The minimum bond required for the transaction is usually between 0.4 and 1 per cent.
- Guarantee model: The warehouse-by-wareness (Isolated) used only the funds allocated to the warehouse, while the full warehouse (Cross) used all available balances in the account.
How can the risk of blast be reduced?
- Reduction of leverage multiples: Leverage is a risk amplifier, and reducing leverage can significantly lift the blast space.
- Set stop losses (stop-loss): Proactively flatten the price of the bomb warehouse and protect the remaining principal.
- Increase in the security deposit: Manually increase the bond under the warehouse-by-warery model or maintain sufficient available balances under the full-warehouse model.
- Concerned about maintaining the security ratio: The larger the space, the higher the requirements usually are, depending on the size of the space, corresponding to different maintenance security requirements.
Excusing statement
The results provided by this calculator are for reference purposes only. Actual burst prices may be biased by exchange-specific algorithms, financial rates, slide points and market fluctuations. Please refer to the actual data of the trading platform you use.