1. In-depth Analysis of Bearish and Short Selling Principles#
Bearish: Anticipating that the market will show a downward trend
Short Selling: An active trading strategy based on bearish judgment. Direct operations in the spot market are not possible and must be realized through futures contracts or leveraged trading.
Mechanism of Short Selling:
- Investors believe that the current inflated coin price has room to decline
- Borrow digital currency from the platform by pledging margin (e.g., 2-3 yuan)
- Immediately sell at the current price (e.g., 10 yuan) to obtain cash
- After the coin price drops (e.g., to 5 yuan), repurchase to return to the platform
- Profit from the price difference = Selling price (10 yuan) - Repurchase price (5 yuan) - Platform interest
Risk Warning:
When the coin price rises contrary to expectations beyond the margin threshold, it will trigger forced liquidation (liquidation), resulting in a total loss of principal.
2. Logic of Bullish and Long Position Operations#
Bullish: Expecting the market to start an upward trend
Long Position: A basic trading strategy of buying at the current price and waiting for appreciation
Process of Long Position Operations:
- Purchase digital currency at the current price (e.g., SOL 140U)
- Hold the coins until the price rises to the target level (e.g., 280U)
- Sell at a high price to realize profit from the price difference (140U profit)
Essential Market Roles:
Bulls and bears do not specifically refer to individuals but represent groups of investors with the same market expectations.
Core Summary:
- Long Position = Build position at low price → Sell at high price
- Short Selling = Borrow coins to sell → Repurchase at low price
- Bulls = Bullish forces, Bears = Bearish camp
@Unintelligible sol Original
Exclusive Benefits for This Month from OKX#
New users can enjoy a digital asset blind box or Dogecoin gift pack upon registration. Mainland users can register directly: Click to go to the official website (VPN may be required in some regions) | Alternative registration channel
Further Reading#
2025 China's Top Ten Digital Asset Trading Platforms Authority List Released 🔥【Must-Collect】
Popular Search Keywords#
Digital Currency Trading Guide|Contract Trading Strategies|Exchange Registration Tutorial|Asset Deposit and Withdrawal Strategies|Web3 Airdrop Tips|Defi Staking Mining|NFT Wallet Configuration|Leverage Trading Risk Control|Exchange APP Download|Mainstream Coin Purchase Tutorial|btc8848.com|heiyetouzi.xyz