One article to clarify what is a Bitcoin position?

If you want to play well with Bitcoin, it is very important to learn position management. As we all know, Bitcoin, as a cryptocurrency, has very high risks. For investors, everyone wants to get the maximum profit possible with the smallest amount of money. This can be said to be the goal of all investors. Vision. Position management is actually a method for investors to allocate their positions and funds according to a certain ratio. Simply put, this position management is a method for investors to manage their money.

What is a Bitcoin position?

In currency trading, position actually refers to the ratio of the investor’s actual investment to the actual investment funds. For example, if you have 10,000 actual investment funds and you use 3,000 yuan to purchase a certain currency, your position will be 30%. If you buy all the coins with 10,000, the position is full, and if you sell all the coins, the position is short. Positions are divided into three types: light position, medium position, and heavy position. The difference between the three positions is the proportion of margin occupied.

Bitcoin position management skills

Position management is a method for investors to allocate their positions and funds according to a certain ratio during the investment process. In fact, to put it directly, position management is to manage investors' own money.

So why do we need position management? Because, in Bitcoin investment, if the position is controlled well, the investment can maximize the use of the remaining position and funds to obtain greater benefits; but if the investor controls the position improperly, the possibility of losses will increase for the investor. .

Position management techniques are divided into two situations, one is for investments with small initial capital, and the other is suitable for investors with larger capital. Let’s look at the first situation first.

For investors with small initial capital, investors can enter the market with 10% of the short position. If the market moves in the opposite direction, they will slowly increase their position in the market outlook. As the proportion of the increase gradually increases, the investment will be shared. cost. The advantage of this method is that the initial risk is small. As long as there is no liquidation, the profit is proportional to the size of the funnel.

For investors with a large amount of funds, they can give up adding positions when the market direction is moving. If the market is consistent, they can gradually add positions, but the proportion of added positions should be gradually reduced. The advantage of this method is that once a unilateral market occurs, it will be countered , you can gain high returns with low risks.

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