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RE: Crypto Academy / Season 3 / Week 2 - Homework Post for professor @cryptokraze
Hello @jehoshua-shey,
The above example applies to margin trading of crypto asset.
"Sell" in this instance means selling Bitcoin to buy USD (this is a BTC/USD chart ) -hinting a depreciation in the value of bitcoin against the Dollar.
Second Question
Take profit means closing the sell position in profit.
And yeah this create a buying opportunity for the coin at a discounted rate.
Stoploss serves as a safety net - should price move in opposite direction (upwards in this case) the stoploss will close the trade in negative if triggered (this should be within your risk limit)
You mean BTC will be bought again with the USD?
Technically yeah.
Since profit is still in the account.
But I recommend you research on Margin Trading (how foreign exchange market works) it will help you understand it more.
Well, margin trading is still spot, only that the trader is trading with borrowed funds.
It seems you're talking about Forex here, not crypto.
Cheers.
Yeah, that's the crypto crosses I trade.