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Title: Confused over PNL/entry price while shorting on Bitmex Post by: thegoatiest on May 12, 2019, 10:10:25 AM Hi,
I've got a question about shorting at Bitmex. I'm confused about Entry price and when you're actually making profit. For example. Say you shorted $500 of BTC when it's @$5000. Then you shorted $500 of BTC when it's @$5500. So now, you're new position is -$1000 with an entry price of: $5225. Now, After you sold the second time the price starts coming down. It get's to $5400. At this point you're still $175 above your entry price, however you are $100 below where you sold the second $500.. Here's where I'm confused. As, selling here at $5400, above your entry. Will cause you to lose XBT. However, surely you profit from having sold at a $100 higher price than it is now? And not merely 'limit your losses' on the half of your position you entered much lower down? Say you sold half your position at $5400, the half that you bought at $5500. Would you still be losing both XBT and Dollar value? Or would you profit XBT or Dollar wise and lower your entry with the 50% of your remaining position back to $5000 again? Additionally, in the above example; say price kept ping-ponging between $5500 and $5400 and you kept selling at $5500 and buying back at $5400, all the while having your under-water short that you initially bought at $5000 before price rose up. Is this profitable? Short scalping essentially, whilst having an underwater short. Does it help make you money, or raise your entry position on the underwater part.... or is it just losing money over and over.? Thanks for clearing this up. Driving me mad. :D |