What is cryptocurrency hedging trading (how to make money by hedging long and short positions in cryptocurrency contracts)
What is cryptocurrency hedging trading? According to official sources, cryptocu
What is cryptocurrency hedging trading? According to official sources, cryptocurrency hedging trading is a tool for traditional financial markets. Specifically, cryptocurrency trading involves market making and speculation using virtual currencies such as Bitcoin, with the aim of reducing investors’ risks, increasing capital utilization, and maximizing profits. For encrypted assets, hedging is a means to protect the value of investment targets against manipulation using digital tokens, thereby avoiding black swan events and maximizing returns.
In the blockchain industry, with the development of technology and the expansion of blockchain applications, many users are exploring how to use blockchain for cryptocurrency, Bitcoin, and Ethereum derivatives trading.
How to make money by hedging long and short positions in cryptocurrency contracts
According to OKEx spot data, as of now, the ratio of long and short positions in cryptocurrency contract trading is 65% to 35%. Among them, short positions account for 36%, long positions account for 32%, flat positions account for 12%, and the average holding ratio of long positions is 8%. Leveraged trading is a trading method that uses leverage multiples to hedge contract risks, and it involves opening or closing positions on a given asset. If there is a large amount of selling pressure on the asset, one can consider buying into a short-term bearish (bullish) trend, or profit by buying low and selling high.
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