How to do long and short in blockchain
- 王林Original
- 2024-07-23 17:11:021165browse
You can perform long and short transactions through the blockchain: long: buy tokens or contracts to open a long position, buy assets and hold the position until the price rises, close the position for profit, sell assets short: borrow assets, sell and borrow When asset prices fall, buy back assets to repay borrowed money and earn the difference
How to do long and short through blockchain
The application of blockchain technology in the financial field continues to expand, including long and short transactions. Going long means buying an asset in anticipation of an increase in its price, while going short means selling an asset in anticipation of a decrease in price. Here’s how to trade long and short via the blockchain:
Go long
- Buy a token or contract: Choose a cryptocurrency or derivative contract related to an asset you’re bullish on.
- Open a long position: Open a long position on an exchange or decentralized finance (DeFi) platform, which means you buy an asset.
- Hold the position: Hold the position until you believe the asset price has risen to the target point.
- Close the position with profit: When you reach the target price, close the position to go long, which means you sell the asset and make a profit.
Sell
- Borrow an asset: Borrow an asset you are bearish on from an exchange or DeFi platform.
- Selling Borrowed Assets: Selling borrowed assets through an exchange or DeFi platform is the first step to shorting.
- Asset prices fall: Wait for asset prices to fall.
- Buy back assets to repay: Once the asset price drops to the target point, buy back the assets you sold and repay the borrowed assets, and you will receive the difference as profit.
Note:
- Before entering into long and short transactions, please be sure to fully understand the risks involved.
- Leveraged trading can expand returns, but it also increases risks.
- Short selling involves the risk of borrowing an asset and if the price of the asset increases, you may lose your money.
- Blockchain long and short trading typically uses decentralized platforms, which may bring different risks and advantages than centralized exchanges.
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