1. Spot Trading (Currency)

To obtain digital currencies such as BTC, there are usually two main ways to mine and buy.

Spot trading is a way to buy digital currency.

Spot trading, also known as spot trading, refers to the purchase of other types of digital currency by users using a certain digital currency as a unit of denomination. For example, in the BTC/USDT trading pair, users buy and sell BTC with USDT as the denomination unit.

Among the many digital currencies, BTC, ETH, and USDT are the most commonly used digital currencies to exchange for other currencies, which forms the BTC, ETH, and USDT trading area of ​​the trading platform.

The main board of Bibox spot trading is currently divided into four trading areas: BTC, ETH, USDT and BIX (Bibox’s platform currency).

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2. Leveraged trading

Leverage trading is a supplement to Spot trading. Users use their own funds as margin, and borrow N times the margin from the platform as the principal for investment, so leverage is also called margin trading system. In this process, users need to repay according to the loan amount, interest rate and time, and the calculation method is simple interest.

Leveraged trading is also accompanied by a concept of leverage multiple. 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 the user needs to pay, and the higher the income. Correspondingly, the risks that need to be taken have also increased accordingly.

Spot trading is only operated with its own funds. You can only buy at a low price first, and after the currency price rises, sell at a high price (i.e. go long). Therefore, Spot trading will be silent when it encounters a bear market.

Compared with Spot trading, leveraged trading can not only buy first and then sell, but also sell first and then buy: borrow currency to sell first, and then buy and return (that is, short) when the currency price falls. Therefore, leveraged trading in bear markets can also be profitable.

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3. Future trading

A Future trading is a financial derivative, which is a transaction relative to the spot market. Users can choose to buy long or sell short contracts by judging the ups and downs in futures transactions to obtain benefits from price increases or decreases. Like leveraged trading, leverage multiples can also be used to expand returns.

Investors often use Future 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 profits of one market to make up for the losses of another market, to avoid the uncertain risks caused by price fluctuations in the spot market.

According to the different delivery methods, contracts can be divided into perpetual contracts and fixed-term contracts. Perpetual contracts have no expiration date or settlement date, and users can hold them forever as long as the margin is sufficient. Term futures have a fixed delivery date, such as the current week contract, the next week contract and the quarterly contract.

Bibox currently provides perpetual futures service, and Bibox perpetual futures has its own characteristics and rules:

  • Using USDT for pricing: there is no need to exchange between various currencies, eliminating the trouble and loss caused by currency exchange;
  • The use of index price anchoring and forced liquidation can effectively reduce the risk of liquidation;
  • You can freely choose the leverage multiple and cross-position and isolated-position modes, and you can also adjust the leverage twice after opening a position;
  • Settlement at any time, cash withdrawal at any time: real-time cash withdrawal after closing the position, higher efficiency of capital utilization;
  • Provide copy trading service, users can choose experienced traders to copy their operations with one click, and easily earn profits.

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