Introduction of Hedge Trading Mode as a Trading Strategy
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyser. Today I thought to share my Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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Hedge Trading Mode is a very popular Trading method among many Crypto fans including me. Because, in Hedge Trading Mode, we have the ability to Trade on both sides in any desired Crypto Market.
Simply put, we can open 2 Trades on a single Crypto asset at the same time as Buy long and Sell short orders. As an example, if we need to place one position to take profit in a market uptrend, we also can place another position to take profit in a market downtrend.
The most interesting thing about this Trading method is that we can easily take profit from both sides at one time. And also, we can protect our Funds from unexpected Market Trends.
And also, if we are using cross leverage positions with this Hedge Trading Mode technique, we can Trade any crypto coin or token without any liquidation risk.
I said before, Hedge Trading is a very beneficial Trading technique. Because we can trade any Cryptocurrencies with a zero liquidation or very minimum liquidation risk. Interestingly, we can gain profits from both sides through the Hedge Trading mode. We can also, take it as a protection from Market manipulation. Actually, this technique is very useful in a volatile market as we have profited from both sides. Therefore, we don't need to worry about our investment. We can also start our Trading position with a very low investment. It increases the liquidity of the relevant Crypto-assets as we are trading on both sides at the same time.
We can use Both desktop and Mobile Binance apps to use this Hedge Trading Mode. Both methods are very simple. So, here I will demonstrate it using the Binance web version.
After login in to our Binance account, we can open the Binance Futures Trading window like the below-atatched screenshot.
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We can use Both USD-M and COIN-M trading methods. So, here I will use the USD-M trading method as I'm familiar with it.
After that, we can click on the Trading settings icon from the right side of the window. You can refer to my screenshot to get an idea about the settings icon in the Binance Futures Trading window.
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Then we have to select the Preferences icon from the given list of the settings window like the below-attached screenshot. I have clearly highlighted it from a yellow rectangular line.
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Finally, we can go to the Position mode tab and select the Hedge mode from the given options. As the defaults option it will show the One-way mode of our Trading method. So, here you can change it to the Hedge mode as per your choice. However, you must do this before taking an entry for an Order.
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As I mentioned above, Hedge Trading Mode is a very beneficial Trading mode that has been provided by a lot of brokers. However, nothing we can find as a 100% successful thing in the Crypto Field. Because everything has at least 1% risk as compared to every single asset. So, even the Hedge Trading Mode is a considerable risky trading method.
As an example, if we have taken two positions for both sides of the Market using the Hedge Trading Mode, both positions can be liquidated due to highly volatile market conditions or due to inattention to the relevant Trading position. Therefore, we should try to manage our risk through our own effort. So, we should take some extra attention when we are using Hedge Trading Mode in relevant Trading pair.
In the final words, I can say that this Hedge Trading Mode is a very beneficial Trading method for all the Crypto Traders if they follow all the above-mentioned facts. I hope you will try to do this Trading method if you are quite an experienced Trader in Cryptocurrency Trading.
I have studied the below-sourced art to further study these topics and I have explained all the above facts in my own words.
10% benificiary set for @tron-fan-club
Thank you for sharing this valuable information about Hedge trading mode that very useful to beginner trader like me
You are wwelcome
This is a safe and defensive strategy for trading. Thanks for the tutorial.
You are most welcome.
A very important post for traders you shared with us today. I also personally use binaries. Thanks for sharing this important post with us.
You are welcome and Thank you for visiting my article