Long vs. Short: Basic Futures Strategies
Long vs. Short: Basic Futures Strategies
Crypto futures trading offers opportunities for experienced traders to amplify their potential profits, but it also comes with significant risk. Understanding the fundamental strategies of going “long” or “short” is crucial before engaging in this complex market. This article will provide a comprehensive introduction to these concepts, outlining the mechanics, risks, and basic strategies involved.
What are Futures Contracts?
Before diving into long and short positions, let’s briefly define what a futures contract actually is. A futures contract is a legally binding agreement to buy or sell an asset (in this case, a cryptocurrency) at a predetermined price on a specified future date. These contracts are standardized and traded on exchanges, allowing traders to speculate
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