Long position and Short position in future trading
Introduction |
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Greetings to everyone! In this post, today i will cover the concepts of long term position and short term positions in future trading, exploring how traders can benefit from price movements and how loss may cause through these strategies .
Future trading involves traders buying and selling activities and contracts that commit them to either purchase or sell an cryptocurrency at a predetermined price and date in the future. Two most common strategies in the futures market are long and short positions. A long position means traders expect the asset's price to rise means highly chance of profit , aiming to profit from future price gains.
On the other hand, a short term position trading involves traders betting on the asset's price decline, seeking to benefit from falling prices. These both positions allow traders to speculate and manage risks in the volatile futures market.
Long Position |
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In a long trading position, traders can benefit from price gains in the future and more chances of profit with less risks . For instance, if they purchased Steem cryptocurrency at 1 Steem at 51 PKR, and the price later rises to 200 PKR, they can sell the contract and make a profit of 149 PKR for each Steem.
However, it's very important to be cautious as there are risks involved but less . If the price doesn't rise as expected and falls instead , traders may face losses in a long term position. So, it's very essential to stay informed and make informed decisions in future trading.
Short position |
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In a short position, traders can also get big profit from price movements, but in a different way. Instead of betting on the price increase of an asset like Steem cryptocurrency, they anticipate its price to decline. For example, if a trader expects the price of Steem currency is to fall, they can enter a short position by selling Steem futures contracts at the current rate of 1 Steem to 51 PKR. Later, if the price indeed drops to 30 PKR per Steem, they can buy the currency at the lower rate, making a profit of 21 PKR for each Steem.
However in this it very important to be cautious because its risky , as if the price rises instead of falling, traders may incur losses in a short position. Therefore, we need to careful analysis and risk management are essential in short position trading.
Conclusion |
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In conclusion, both long and short positions in future trading offer opportunities for profit, but is might be expected that loss may possible if our research goes wrong . Traders should stay informed, analyze the market situation and direction , and use risk management strategies to make informed decisions in future trading.
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@artist1111(SFP and S4B Mod)
Goodbye, friends. It is been a pleasure getting to know about you all & posting in this community. I will miss all of you , but it is the time now for me to move on. Take care of yourself and I hope to see you all again very soon, Best of Luck.
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As the sun sets on the day
And the night falls softly in
We close this chapter, dear reader
But the story's not yet done
Tomorrow's pages wait, unwritten
https://twitter.com/HamadkhanMWT/status/1684560864026718208?t=XubrlSjYmkx_PgEKJ_Qnrw&s=19
Dear @artist1111 ,
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You have chosen a good topic to discuss but your explanation is shallow.
You didn't include how risks can be mitigated I these kind of trading.
Please Improve the quality of your post
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Thank You.
Nice review, bro.
Moreover, I am an intraday trader in crypto market derivatives.
According to the trend and time frame, it will be very profitable to do two-way trading.🤗
Yes its is necessary to utilize both of it , no one only dependent on long term position however we would not ignore the second long position strategy .
🤗