Try not to short in the contract market. It's not that you absolutely cannot short, but the risk of shorting is much greater than buying spot or contracts. I especially recommend shorting a single position, except for the hedging strategy of using a combination of BTC long and other currency shorts.

My advice to new friends is to never go short.

Even if you are an experienced friend, I suggest that you do not go shorting with large positions for profit. It is not worth it. Many people who have shorted Luna have fallen.

Reason: If you short a large position in junk coins, the chips are easily collected. The funding rate alone can drain you dry, and there will be a last-ditch pullback that will blow you up. TRB is a classic example, rising 2.14 times overnight, and countless people were liquidated.

The only way to short is to sell the spot, buy it back if it falls, and don't buy it if it doesn't fall. There is only the risk of selling at a loss, but no risk of liquidation. I occasionally do this. The advantage is that it allows you to develop the habit of selling at a loss, but the disadvantage is that you sell at a loss, and you can't have the best of both worlds. Just accept it yourself, but I am very calm, because as long as there is money, there are many opportunities. Between getting rich overnight and getting rich overnight, I prefer getting rich overnight overnight.

Take a look at this picture:

On August 6, the GFT price soared where my spool was, but the open interest did not soar. This was obviously because the dealer was closing long positions. Then, due to the rush to close long positions, the funding rate was negative, but the contract kept rising and the open interest did not increase. There was only one reason, that is, other people kept buying long positions. Buying long positions and closing long positions were evenly matched, but closing long positions were slightly better. Why did some people buy long positions? This was because the dealer pushed up the spot price, which was caused by market rules. Arbitrage opportunities appeared. If the spot price was high and the contract price was low, then I would definitely sell the spot price and buy the contract price to earn arbitrage funds. If the spot price was low and the contract price was high, then the arbitrage method would be to buy the spot price and sell the contract price. After the prices of both parties converged, the position would be directly closed to earn arbitrage.

On August 6, the holding volume reached 35M. The market value was 45M. I just discovered this phenomenon at this time. Such a large holding volume must be in preparation for a rise. Of course, this is uncertain, it is just a logical guess.

I reflected afterwards that at this time, the dealer had already started to close the position in the area marked by my line axis. When I bought it, it was actually a last-ditch effort. Of course, I made money in the end as expected, so I sold it decisively. At this time, the big spot chips were in the hands of the dealer, because many people sold the spot to buy contracts, and some were optimistic about the future surge of the contract, which led to the short-term surge later. When the dealer saw this surge, he also opened a short order, which did not lead to a sharp drop and then rise in the position. The position fell very steadily. At this time, the dealer began to smash the spot directly, and then his short order took the biggest profit, and then directly closed the short position, and the contract position fell in large volume.

In this way, the banker completed the double kill of long and short positions and made a profit.

Why do bankers dare to short sell? Because the spot chips are in their hands. If we short sell, and the bankers know that there are a lot of long positions, the bankers will definitely blow up your position. It is impossible for them to share the meat with you. They will definitely blow up your position first and then short sell. If you short sell, you will not make any profit.

As for how to buy, the currency circle dry goods, click on the avatar to think about it, the bull market 100 times the potential currency deployment, and the daily spot strategy to share! #美联储何时降息？ #GFT #BTC走势分析 $GFT $LUNA