Anyone Shorting or Hedging Bitcoin?

[blockrevs]

Looking for some help on hedging a Bitcoin position.

Are any of you doing so?  would like help on the platform and if you use options which puts to buy

thank you!

[Charles-Tim]

One-way mode means if you have already opened a position, you can use the opposite to close or reduce the fund used. For example, you buy (long a position) with 0.001 BTC, if it is one-way mode, you can sell all which will close the position, or you can sell part of it like 0.0004 BTC which will close 0.0004 BTC and remain only 0.0006 BTC in the opened position.

The hedge mode is in the other way. For example, you buy (long a position), if it is in hedge mode, if you sell, it will open another position entirely which will be countering the previous one you opened that is not yet closed. If you open a position (long/buy) with 0.001 BTC, and you short/sell with another 0.002 BTC, it means another position will be opened in short/sell direction which can counter the first position opened. Assume you long 0.001 BTC and later you short 0.001 BTC, the two positions are opened (one for long and the other for short position). It means as the long position is increasing in profit, the short will be decreasing in profit at the same rate and vice versa, which means no money loss at that time aside trading fee.

If you want to short, you will need to learn margin trading, or most preferably future trading which has all the features. But know that they are highly risky as the leverage is increasing. The higher the leverage you used, the higher the risk of losing and the higher the chance of making more profit.


Note that you can open a position in future trading without using any leverage which is less risky to leveraging. Buy means long while sell means short.

[blockrevs]

Appreciate that sir

what about Options and Puts?

we were thinking LedgerX or Interactive brokers is there a platform you like?

[Charles-Tim]

what about Options and Puts?

I do not know much about options than people calling it gambling. I think it is all about predicting the price of a coin (like bitcoin) at a specific time range. If the prediction favours your direction chosing, then you will win, but if it is otherwise, then it is a loss.

Call means buy
Put means sell

we were thinking LedgerX or Interactive brokers is there a platform you like?

I remembered when Binance made intermediate verification compulsory, some people on this forum were comparing the exchange with FTX which are the first and the third largest exchanges respectively and  presently. From the compare, I understood both are reputed and can be used for future trading, but Binance has increased the level of KYC before customers can be able to make use of their service. Also exchanges with high marketcap could offer future trading, but do more research to know the best of choice.


These type of exchanges are custodial exchanges, do not forget it is not your key which means it is not your coin on blockchain, which means you have no full control of the coins you sent to the centralized exchanges. Also exchanges are often hacked. Do not leave coins not used for trading on custodial exchanges, send them all back to your noncustododial wallets that you have its keys, which makes you have the full control over your own coin.