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Beginner's Quick Guide to Understanding Long and Short Positions in Contracts

#币安手续费详解#欧易怎么转账#炒币要不要交税#币安合约怎么玩#币安实名认证教程32
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The document discusses the fundamental concepts of short selling (做空) and long buying (做多) in trading. 1. **Short Selling (做空)**: - **Bearish Outlook**: Anticipating a market decline. - **Mechanism**: Investors sell assets they believe are overvalued, then buy them back at a lower price to profit from the difference. - **Example**: Selling a cryptocurrency at 10 units, borrowing against collateral, and buying it back at 5 units for a profit of 5 units, with a warning about the risk of forced liquidation if prices rise. 2. **Long Buying (做多)**: - **Bullish Outlook**: Expecting a market rise. - **Mechanism**: Investors buy assets at a low price and sell them at a higher price for profit. - **Example**: Purchasing a cryptocurrency at 140 units and selling it at 280 units for a profit of 140 units. 3. **Key Insights**: - Both strategies represent different market expectations: bulls (optimists) and bears (pessimists). - The document also provides links to tools and resources for trading, along with promotional offers for new users on a trading platform. Overall, it emphasizes understanding market sentiment and the mechanics of trading strategies.

Today, many friends are still consulting basic issues—the underlying logic of shorting and going long, with a special diagram to help everyone understand intuitively.

1. Bearish and Short Selling Mechanism#

Bearish: Anticipating that the market will enter a downward channel
Short Selling: Proactive selling based on bearish judgment (in the spot market, this needs to be achieved through futures/contract leverage)

Short Selling Operation Model#

When investors believe that the current coin price is inflated and there is room for a future decline, they adopt the "sell first, buy back later" strategy:

  1. Sell the held coin at the current price
  2. Buy back at a lower price after the coin price drops
  3. Achieve profit through the price difference

Practical Case Analysis#

Assuming a certain coin is currently priced at 10 yuan, predicting a decline:

  1. Mortgage 2 yuan margin to borrow 1 coin
  2. Immediately sell at the market price of 10 yuan
  3. When the coin price drops to 5 yuan:
    • Spend 5 yuan to buy back 1 coin to return
    • Retain 5 yuan profit (excluding capital costs)

⚠️ Risk Warning: If the coin price rises against expectations, the margin will face forced liquidation risk

2. Bullish and Long Buying Strategy#

Bullish: Anticipating that the market will enter an upward channel
Going Long: Achieving profit through "buy low, sell high" (in the spot market, directly buying is going long)

Bullish Operation Logic#

When investors are optimistic about the appreciation potential of a coin:

  1. Purchase the target coin at the current price
  2. Wait for the price to rise and then choose to sell
  3. Obtain profit through the buying and selling price difference

Practical Case Demonstration#

Establishing a position when SOL is priced at 140U:

  1. Invest 140U to buy 1 SOL
  2. Sell when the coin price rises to 280U
  3. Achieve a net profit of 140U

🔑 Core Understanding: Both bulls and bears represent different market expectation groups, not specific individuals

image

Core Comparison#

  • Going Long: Bullish → Buy → Sell at a high price (forward operation)
  • Short Selling: Bearish → Borrow coins to sell → Buy back at a low price (reverse operation)
  • Bulls: Market optimists
  • Bears: Market pessimists

@Uncomprehending sol Original

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Further Reading#

2025 Top Ten Exchanges in China Authority Ranking🔥
Real Wealth Stories in the Crypto Circle: Revelations from Millions to Debt

High-Frequency Searches#

Bitcoin Purchase Guide | Contract Trading Strategies | Exchange Registration Tutorial | Web3 Airdrop Strategies | Staking Mining Techniques | Anti-Explosive Position Guide | Node Operation Manual | OKX/Binance Practical Operations

(This article is jointly presented by btc8848.com and heiyetouzi.xyz)

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