1. In-depth Analysis of Short Selling and Shorting Principles#
Short Selling: Anticipating a downward trend in the market
Shorting: An active trading strategy based on a bearish judgment. Direct operations in the spot market are not possible and must be realized through futures contracts or leveraged trading.
Short Selling Mechanism:
- Investors believe that the current inflated coin price has room to fall.
- Borrow digital currency from the platform by collateralizing margin (e.g., 2-3 yuan).
- Immediately sell at the current price (e.g., 10 yuan) to obtain cash.
- After the coin price drops (e.g., to 5 yuan), repurchase to return to the platform.
- Profit from the price difference = Selling price (10 yuan) - Repurchase price (5 yuan) - Platform interest.
Risk Warning:
When the coin price rises against expectations beyond the margin threshold, it will trigger forced liquidation (margin call), resulting in a total loss of principal.
2. The Logic of Bullish and Long Operations#
Bullish: Expecting the market to start an upward trend.
Going Long: A basic trading strategy of buying at the current price and waiting for appreciation.
Bullish Operation Process:
- Purchase digital currency at the current price (e.g., SOL 140U).
- Hold the coins until they rise to the target price (e.g., 280U).
- Sell at a high price to realize profit from the price difference (140U profit).
Essence of Market Roles:
Bulls and bears do not specifically refer to individuals but represent groups of investors with the same market expectations.
Core Summary:
- Going Long = Building positions at low prices → Selling at high prices
- Short Selling = Borrowing coins to sell → Repurchasing at low prices
- Bulls = Bullish forces, Bears = Bearish camp
@Unintelligible sol Original
Exclusive Benefits for This Month from OKX#
New users can enjoy a digital asset blind box or Dogecoin gift pack upon registration. Mainland users can register directly: Click to go to the official website (VPN may be required in some regions) | Alternative registration channel
Further Reading#
2025 Top Ten Digital Asset Trading Platforms in China Official List Released 🔥【Must-Bookmark】
【Blockchain Wealth Record】From Zero to Millions and Back to Zero: A Confession from a Veteran Trader
Popular Search Keywords#
Digital Currency Trading Guide|Contract Trading Strategies|Exchange Registration Tutorial|Asset Deposit and Withdrawal Strategies|Web3 Airdrop Tips|Defi Staking Mining|NFT Wallet Configuration|Leverage Trading Risk Control|Exchange APP Download|Mainstream Coin Purchase Tutorial|btc8848.com|heiyetouzi.xyz