欧易注册

欧易注册

活跃于欧易、币安、火币等华语社区，专注空投0撸、链上实战与Web3研报分享。横跨Meme、GameFi、DeFi与NFT，记录每日交易日记，捕捉加密风暴中的每一个机会。
HomeArchives

A Beginner's Guide to Understanding Long and Short Positions in Contracts Quickly, Even with Zero Foundation

#Bitget APP功能介绍#欧易新手必看#Gate USDT充值说明#Bitget账户安全设置#欧易注册教程53
AI Translation
This post is translated from Chinese into English through AI.View Original
AI-generated summary
The document discusses the core concepts of short selling (做空) and long buying (做多) in trading, providing visual aids for better understanding. ### Short Selling (做空) - **Bearish Outlook**: Predicting a market downturn. - **Strategy**: Investors sell assets they believe are overvalued, aiming to buy them back at a lower price for profit. - **Example**: Selling an asset at 10 units, borrowing against collateral, and repurchasing at 5 units yields a profit of 5 units (before interest). - **Risk**: If the asset price rises instead, losses can exceed collateral, leading to forced liquidation. ### Long Buying (做多) - **Bullish Outlook**: Anticipating a market upturn. - **Strategy**: Investors buy low and sell high to profit. - **Example**: Purchasing an asset at 140 units and selling at 280 units results in a 100% profit. ### Market Dynamics - Both short and long positions reflect groups of investors with similar market expectations. ### Summary Table | Strategy Type | Market Expectation | Operation Logic | Profit Source | |---------------|--------------------|-------------------------|------------------| | Long | Bullish | Buy low → Sell high | Positive price difference | | Short | Bearish | Sell borrowed → Buy low | Negative price difference | The document also includes promotional offers for new users and additional reading resources on digital asset trading platforms and investment experiences.

Today, friends are also consulting basic concepts—the core logic of short selling and going long, with special diagrams to aid understanding.

1. Bearish and Short Selling System#

Bearish: Predicting that the market will enter a downward channel
Short Selling: An active trading strategy based on bearish judgment. Direct operation in the spot market is not possible and must be achieved through futures/contract leverage.

Detailed Explanation of Short Selling:

  1. Investors believe the current coin price is overvalued and predict it will fall in the future.
  2. Immediately sell held assets (or borrow coins through collateral).
  3. After the coin price drops, repurchase to close the position and earn the price difference.

Practical Case Analysis:

  • Current price 10 yuan/coin, collateral of 2 yuan to borrow 1 coin.
  • Immediately sell at the market price of 10 yuan to obtain cash.
  • When the coin price drops to 5 yuan:
    ▶ Spend 5 yuan to repurchase 1 coin to return.
    ▶ Net profit of 5 yuan (before deducting interest).

Risk Warning:
If the coin price rises in the opposite direction, the margin will incur losses. When losses exceed the collateral amount, forced liquidation (margin call) is triggered, and the principal goes to zero.

2. Bullish and Going Long Mechanism#

Bullish: Predicting that the market will enter an upward cycle.
Going Long: A trading strategy that profits from buying low and selling high, applicable to spot/leverage markets.

Bullish Operation Logic:

  1. Investors are optimistic about the future trend of the underlying asset.
  2. Buy at the current price to establish a position.
  3. Sell for profit after the price rises.

Typical Case Demonstration:

  • Current price 140U to purchase SOL.
  • Hold the coin until it rises to 280U and then sell.
  • Achieve a 100% return (140U profit).

Essence of Market Roles:
Both bulls and bears are not specific individuals but a collective of investors with the same market expectations.

image

Core Summary:

Strategy TypeMarket ExpectationOperation LogicSource of Profit
Going LongBullishAccumulate at low price → Sell at high pricePositive price difference
Short SellingBearishBorrow coins to sell → Repurchase at low priceNegative price difference

@Uncomprehending sol Original

Exclusive Benefits for OKX This Month#

New users can enjoy a blind box/Dogecoin gift package upon registration, supporting direct registration in the country: Click to go directly to the official registration channel (VPN required in some regions) or Alternative registration entry

image

Extended Reading#

2025 China's Top Ten Digital Asset Trading Platforms Authority List Released 🔥【Must-Collect】

【Revealing the Wealth Code in the Crypto Circle】The real journey from zero to tens of millions and back to zero: A decade of ups and downs for an old investor

High-Frequency Search Keywords#

Bitcoin domestic purchase guide | Contract trading strategy | Exchange liquidation cases | OKX client download | Binance APP registration tutorial | Fiat currency deposit strategy | Web3 airdrop tips | OKX passport certification | Decentralized mining | NFT wallet configuration | Leverage trading mindset | Staking yield calculation | Minting tutorial | Node operation guide | Path to financial freedom

(Data source: btc8848.com & heiyetouzi.xyz user behavior analysis)

Loading...
Ownership of this post data is guaranteed by blockchain and smart contracts to the creator alone.