Talk about hedging, I've entered many live channels, how come there are so many newbies playing hedging?


Hedging is not as good as directly closing the position or reducing the position. Why do I say this?
For example, if you bought 100 Ethereum at $4500 and then the market dropped to $4400, at this point to avoid liquidation, you opened a Hedging position and bought 100 shorts.
So, at this time, will your money change? No. Your money will not change. Whether it's the profit from a long position rebound or the profit from a short position, even if you made a profit of 10,000 dollars on your short position, but you lost 10,000 dollars on your long position.
So, what is the difference between hedging and closing a position?
Yes, the first point will incur a lot of extra fees.
The second point: it gives newbies the feeling that they have two positions sitting there, which is just a psychological comfort; in reality, they are already at a loss and have been closed.
So how do they say to relieve the position?
Let's take the data above as an example. If it drops to 4300, and since you opened a Hedging position, at this point, the short position is making a profit of 10,000 USD. If you then reduce your position by 50 Ethereum, your account assets will start to change.
.. Because you bought 100 for going up and 50 for going down. So actually, it’s equivalent to your account buying 50 for going up at 4300 USD. And not what you thought, 100 for going up and 50 for going down, because the extra positions will only incur transaction fees, and will not generate profits or losses; only the extra 50 will affect your assets with profits and losses?
So what you think is a way to break free from losses is not really a way to do so. Instead, after you have lost money, you use the remaining funds to slowly "reduce your position" at reasonable price levels. However, what you think is reducing your position is actually opening a new position at the very moment you reduce it. Then you slowly try to profit back.
But why do most people fail to get out of their positions and end up with losses? It's because their positions are too heavy and the psychological pressure is too great.
Hedging is not as good as closing the position or reducing the position; you have to be willing to take losses in order to make a profit.
All contract players will definitely be trapped in positions, it's not just focused on you. Heavy positions affect the mindset, and once the mindset is affected, it will impact operations.
Also, let me say one last thing, if anyone teaches you Hedging in the future, just curse them back, foolish thing.
ETH3.8%
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ContractDashenvip
· 09-01 15:21
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