Since June 27, when BTC reached its highest price of $13900 this year, prices have fluctuated sharply from $9,100 to $13,000, driving the overall market trend weakening gradually. Some mainstream currencies have even fallen below the prices before market began in early April, and counterfeit currencies are even more terrible.
When investors trading, they face big price fluctuations, which is very easy caused loss. In particular, some users who use contracts or leverages, once they make market mistakes, they will inevitably face deficit choices or increase margin.
BTC market value accounts for nearly 70% of total market value of all digital currencies, which has a decisive impact on market trend. Therefore, it is also the most competitive factors between long and short sides. It is difficult for users to judge market trend.
At the same time, some factors affecting BTC price are also continuous, everyone has different opinions about good or bad news. In recent times, there have been Facebook’s plans to release Libra、 WMT is preparing to launch offline retail alliance chain、USDT New York hearing、Plus token Wallet Running Cash、countries launching CBDC、Argentina’s bond retreat、 international trade friction again Upgrades、BTC’ s output cuts in half next year and US Treasury bonds emergence , all this indicates that financial crisis will happen again.
These news are not clear in the future，good news and bad news are continuous talked about，However, after our careful analysis, we can find that bad news is mostly short time, while good news is a long-term duration.
For example, Federal Reserve cut interest rates and US 10 years Treasury bond rate were lower than 2 years interest rate. The last time it appeared was on the eve of 2008 global financial crisis.In essence，it was to stimulate consumption and avoid economic depression through loose economic policies.This may indicate that global financial crisis may be approaching.
BTC is proposed in 2008 financial crisis, and it has the property of storing value hedges. In recent years, when turbulence and currency devaluation occurred in some countries and regions, a large amount of assets will enter digital currency market to seek preservation. Some countries also use BTC as a strategic reserve against US economic sanctions.
Therefore, in terms of long-term, BTC price is still very likely to rise in the future，But in short term, some bad news will also influence or delay upward trend, forming the status quo of back-and-forth fluctuations and increasing investment risks.
AOFEX also suggests that users can make rational use of some digital currency and financial derivatives to hedge possible risks when investing.
At present, the most common digital currency transactions on the market are spot trading, leveraged trading and contract trading. The main drawback of spot trading is that it occupies more funds, can only gain one-way returns, and is seriously affected by price fluctuations. The main drawback of leveraged trading have amplified the impact of market price volatility, with an exponential increase in risk. In addition to leveraged nature of contract trading, investors are also prone to operational errors or violations of trading discipline, resulting in unnecessary losses.
NSO is a financial derivative used to help investors hedge the risks of digital currency investment. Compared to other market trading model, there is a big difference.
In NSO trading, users can flexibly choose trading sessions, buy up/down options in mainstream currencies, or further buy options with different ups/downs ranges, and then get corresponding benefits when market result matches with expectation.
NSO trading allows investors to reduce systemic or non-systematic risks through simple, flexible operations. Under limited and controllable risks, investors carry out directional target trading, so risks can be controlled and investors know their returns. At the same time, NSO trading can also help users to automatically stop losses and profits, avoiding losses caused by personal factors.
NSO trading results are determined by global market factors, using prices of AOFEX and other four major global exchanges, and calculated according to a certain weight.
Therefore,when NSO trading is reasonable traded by investors,it can effectively hedge risk in volatile market.
At the same time,AOFEX will also release a new version of web page and APP in the near future, please look forward to it.