The difference in profits between short and long positions in currency speculation

The difference between short-selling and long-selling in currency speculation is that long-selling profits from rising currency prices, while short-selling profits from falling currency prices. Specifically, long positions are made by buying low-priced currencies and selling them when the price rises to make a profit; short positions are made by borrowing high-priced currencies, selling them after the currency prices fall and buying them back at low prices to earn the difference.

The difference between the profits of short-selling and long-selling in currency speculation

The difference between the profits of short-selling and long-selling in currency speculation lies in the different profit methods : Going long makes a profit when the currency price rises, and going short makes a profit when the currency price falls.

The profit principle of going long:

• Being long means buying a cryptocurrency and selling it to make a profit after the currency price rises.
• Profit formula: Profit = Selling price - Buying price
• When the market is in a bull market, you can usually get considerable profits by going long.

The profit principle of short selling:

• Short selling refers to borrowing a cryptocurrency, then selling it when the price of the currency falls, and then selling it when the currency price falls. After the price continues to fall, buy it and return it, thereby earning the price difference.
• Profit formula: Profit = selling price - buying price (the price when borrowing)
• When the market is in a bear market, short selling can earn profits.

Income comparison:

## Prerequisites for profit COIN PRICE RisingCoin Price FallRiskBullishBearishLeverage UseYesYesProfit spaceNo upper limitDetermined by the drop in currency pricePotential LossUnlimitedLimited (price at time of purchase)

Profit methods	多多	SHORT

Required Note:

Shorting requires borrowing cryptocurrency, which usually requires paying interest.
• Although short selling has limited potential losses, if the market rebounds, huge losses may also occur.
• The risk of currency speculation is relatively high. It is recommended to invest cautiously based on your own risk tolerance.

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