Everyone knows that the best and proven way to invest is to buy low and sell high. By the way, this method is often even more profitable than trading. For example, some of our top traders recently shared statistics: if they bought bitcoin in 2016 and kept it until 2021, selling at 60k, they would get 2.5 times more net profit than today. Of course, we consider this example under ideal conditions: we already know that bitcoin will grow.
As you can see, such a scheme is ideal for hedging spot purchases in case of a possible market reversal.If you do not place a trailing stop, there is a high probability that the market will reverse, the price will go up, and you will continue to remain in the hedging position with a zero result. Be sure to remember that on a margin platform, borrowed funds do not come for free. The trader must pay interest to the exchange for the use of these funds, which may be in the form of opening fees, renewal fees, and closing fees.When the liquidation price is reached, your position will be forcibly closed.
This content is being provided to you for informational purposes only, does not constitute an offer, or solicitation of an offer nor a recommendation by me to buy, sell, or hold any security, financial product, or instrument referenced in the content, and does not constitute investment advice, financial advice, trading advice, or any other sort of advice.
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