Coin circle needs new Oriental

6 月 2 日晚，比特币从 1.1 万美金突然无抵抗下跌了 700 美金，并随后迅速击穿 9400 美金的事情，相信大家已经有所了解，而 BitMEX 的合约甚至最低探到了 8600 美金，称其为 「小 312 」也不为过了。

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Predictably, such market volatility, after 312, may be only a few more. In fact, after the 312 crash, investors should more or less realize that if you don't do value investing, and only do pure speculation trading, you will find that every time you trade, it is actually a war.

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Just like a football game, the offense and defense of the two sides of the field switch at any time. When executing the offensive tactics, also want to ensure their own back at any time and any place, in the opponent's sudden attack, to ensure that they have the ability to defend. 312 collapse is an attack from the other side, but from the burst of the warehouse data, 100,000 people burst 20 billion yuan, the secondary market investors do not do a good defense, rout.

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Trade defense

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Portfolio allocations among investors with little trading experience are a blank. In this regard, trading platforms are also generally aware that options and leveraged tokens have become the derivative battlefield after futures contracts. Both of these new features have very appropriate scenarios in the current market context, such as hedging the entire portfolio and reducing exposure to other positions. Such as the rise of options and leveraged tokens in the secondary market.

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However, the current user experience of options and leveraged tokens is not perfect. The pricing and time wear and tear of options are extremely complex, and leveraged tokens also wear and tear. These are not friendly to inexperienced investors.

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In fact, hedging with options and leveraged tokens is to protect, to put it plainly, this is an insurance for ordinary users, if the insurance idea, investors will better understand. We've noticed that Bybit recently designed its own new feature called "Mutual Insurance" along these lines.

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Like the logic of many insurance products, the core purpose of "mutual insurance" is to pay for user losses. The compensation scope here is very wide, not limited to the bursting of the warehouse, as long as the user appears in the contract trading losses, can take the initiative to settle the compensation.

For example, an investor placed a $20,000 perpetual BTC contract at $9,000, and then bitcoin suddenly broke through $10,000. This time investor psychology is bound to fluctuate.

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Look at the investor's loss first, 20000*(1/10000-1/9000)=-0.22 BTC, according to the currency standard, has lost 10%.

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Normally, investors don't have any defensive strategy, and can only take their bets or stop their losses and get out. But the emergence of insurance products will make investors' choices easier.

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Investors bought short contracts at $9,000 and bought insurance for a fraction of their positions. When the price of BTC rises to $10,000, investors can settle the insurance manually. Where there is a loss, the insurance will pay out.

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According to the calculation formula of insurance compensation: the amount of insurance compensation for empty position = number of insurance contracts *(1/ insured price -1/ insurance compensation price). The payout to the investor is 20,000 *(1/9000-1/10000)=0.22 BTC.

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Equivalent, the investor has no profit and loss, only insurance and fee expenses. However, the ROI of insurance is not only the change of amount, but also the change of investor psychology should be calculated in the return of insurance. It's as if an offensive player will always be able to attack without fear that there will be no defensive player to lose the game.

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A simple trading scenario, if wang has total 1 million, direction are the bull's spot and futures positions, then he anticipation will be in a callback, don't want to give up both has the cost advantage positioning, again afraid to bear the risk of short-term slump, also want to use less as far as possible to hedge funds, try to simplify the operation strategy.

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In this scenario, "mutual insurance" is very advantageous, wang may only need to take a small position from the long funds to buy "mutual insurance", to achieve real-time dynamic, efficient hedging.

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If the market continues to rise, the hedging position loss is limited, the risk rate of the entire account is reduced; Hedging can also yield linear gains if the market falls as expected, while keeping low-cost long positions intact.

In Bybit's insurance pool, 200 BTC were officially injected at the beginning of its launch. According to the balance of mutual insurance fund on the trading platform, there were 179.14 BTC remaining in the insurance pool as of June 17, indicating that Bybit investors have received at least 21 BTC payments through "mutual insurance". The decline of mutual insurance funds also shows that many investors are benefiting from mutual insurance.

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Bybit's "mutual insurance" works in three ways: active settlement, maturity-to-maturity settlement, and Strong-even settlement. To sum up, as long as the investor's position losses, the purchase of "mutual insurance" can compensate, the compensation amount and position, insurance price, and settlement price related.

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In fact, the imaginary space of insurance is not only to pay out in case of loss, but also to guarantee the investor's position cost. In the case of a rising investor, if a market correction is expected, insurance can guarantee that the market will be paid after the decline, while the investor can not lose the cost of the position. In other words, with the addition of insurance, investors may realize bilateral profits.

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As well as providing investors with defensive ideas, Bybit also helps them with offensive tactical ideas.

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Attack of the trade

The goal of the offense is the same. The offense on the court is for goals, the offense on the trading floor is for profits. On the field of play, there is logic to any attack, a well-trained team will be very strict execution of the tactics, not rely on the pitch to shout, but see which players running to what position, meaning the attack to play what kind of tactics. The movement of a player is a signal.

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Similarly, anyone who trades will have a signal indicating, for example, that the price of a bitcoin is above $10,000, or the rate of funds is at a new high, or that the amount of money held exceeds $1 billion, and investors will have a signal to act as a reference.

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Bybit's new "strategy alert" is a tactical guide on the trading floor that reminds investors of the signals they are paying attention to and allows them to execute.

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"Strategy reminder" provides investors with three reminder modes: real-time price reminder, custom indicator reminder, and default strategy reminder template.

The real advantage of "strategy alerts" lies in late evolution, the process of making things automatic. At present, the investor only sets the conditions. After the conditions are met, the investor opens the App to open the position or operate manually. If it evolves in the quantitative direction, the system can operate automatically after the conditions are met.

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Imagine, when the spot price of Bitcoin exceeds $10,000 and the current ratio in the same period exceeds 100%, and the capital rate is negative, the system automatically buys the spot and shorts the futures. For investors, is this offensive profit more fluent than the manual experience?

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Bybit's "policy alerts" are actually implementing this process.

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The user education

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Whether "offensive" or "defensive" is a metaphor to help investors understand the business of trading, the purpose of "mutual insurance" and "strategy alerts" is, in essence, user education.

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This word has been mentioned many times recently. Whether the trading platform should take the responsibility of user education is the main contradiction. In fact, in a sense, user education may be the next direction of trading platform.

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The biggest asset the slump has brought to the secondary market is the importance of trading portfolios. Investors who have put options on many orders, and who keep hedging their bets, will at least not be wiped out in a slump, but those with full leverage in one direction will not be immune.

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Therefore, after the crash, options began to be paid attention to by investors, and grid trading, which had been silent for a long time, began to be promoted in the trading platform. The "quantization" that should only be considered by big funds began to be tried in small funds, and some trading platforms began to launch quantitative products. The launch of functions such as "mutual protection" and "strategy reminder" also illustrates this problem: investors are increasingly in need of investment education guided by correct logic, and trading products on trading platforms are also developing towards this trend.

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Two years ago almost no one in the coin circle played the contract, now the whole people leverage, and now most retail investors do not know quantitative, two years later, the whole people quantitative is not impossible. In this 7 x 24 battleground, it's up to you to see who can be the new Oriental of coin circles.

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