Gate.io is available 24 hours a day, 7 days a week to provide transaction customer service, including customer troubleshooting. It is one of the most famous virtual currency exchanges in the world. Gate.io has a large number of users, and they trade every day using various strategies. Under such circumstances, is it possible to do both on Gate.io? And will both be a winning strategy in trading?
What is Hedge?
Simply put, ambidexterity is a trading strategy in which you hold both buy and sell positions in a currency pair. If there is a big move in the buying direction, the strategy is to cut the losses on the sell side and continue to hold on to the buy side. Of course, if this were the case, we would do the opposite. In other words, those who want to cut their losses will go short, and those who are making profits will go long. No matter which direction the market moves, you can make a profit and avoid losses. You can start and participate in futures or spot trading. Log in to see prices.
Trade with leverage
When trading altcoins such as Bitcoin (BTC), USDT, and ETH using futures trading rather than spot trading, and with maximum leverage, traders often adopt a double-denominated method to prevent unrealized losses. The point is when the money is deposited into the wallet, and if there are no funds in the balance, it may become unbearable depending on the entry timing. Because it has two positions. Let’s use the indicator function etc. to plan the timing.
Main methods in FX
Ryoden is a trading method used in FX, but it can also be used with virtual currencies. Some people use this method for multiple stocks. Currently, other exchanges such as Binance, OKX, Bitget, and MEXC also allow double-denominated trading. Stock selection is important, and the higher the price movement and volatility of a currency, the higher the risk. Analyze market information, make predictions, and consider whether to buy or sell on both sides.
Advantages and disadvantages of both
At first glance, double-denominated stocks have both buy and sell properties, so it may seem like a strategy that is difficult to generate profits or losses, but in reality, it is difficult. So I will explain the advantages and disadvantages of both. You can also trade by opening it from the app, and you can also earn airdrops, purchase NFTs, send money, etc. all over the world. Margins are low and there are many services and products for VIPs, making it easy to make a profit. News, blogs, and APIs are also available on the web, so let’s take a look. You can trade on platforms such as derivatives, grids, margin trading, etc. such as bitcoin and ethereum.
Payment timing is difficult
Theoretically, it is a tactic that makes it difficult to make a profit or a loss, but if you make a mistake in the settlement timing, there is a risk of a big loss. Even if you move strongly in the buying direction and cut the loss, there are many cases where the buying position is also at a loss due to a crash. If you do not do this strategy after you have some trading experience and skills, you will see a lot of pain.
Reduce profits and losses
Since both houses have both buying and selling, it is theoretically difficult to make a profit and the loss can be suppressed. Therefore, it is a tactic that is said to be often used when it is not possible to read which way to go.
risk hedge
Hedging is effective when you do not want to close the position you are currently holding even if the market price seems to change suddenly. Even if a loss occurs in the position you have held so far due to economic indicators or political events, you can hedge the risk by turning it into a positive position later.
Tax measures
Virtual currency transactions are unrealized gains unless they are settled even if they are profitable, and while they cannot be used freely, they are not taxed. If you want to avoid paying taxes by fixing profits now, but you don’t want to reduce unrealized gains, you can delay taxation by holding both.
increase spread
If you do both construction, it will take a lot of spread. A spread is what you take each time you open a position. Therefore, placing two orders for buying and selling will result in a loss in fees.
Easier to lose money
Note that both buildings are prone to loss cuts. This is because if you have two positions, the required margin will increase accordingly. If you want to make the most of both buildings, it is important to prepare a large amount of margin. Or you should drop the lot.
swap point
Swap points are basically negative in both buildings. Because swap points are different for buy and sell. If you hold a hedged position for a long time, you may be eaten by swap points in addition to the spread.
Open an account for free
Gate.io allows you to open an account for free. I will introduce it in the article below, so I hope you find it helpful. Management and security such as authentication are solid, and you can learn about financial products such as listed tokens in advance through the media. You can see an overview of the service in the latest official website. Earn money with dogecoin, solana, cardano, xrp, etc. It is also a popular exchange for institutional investors who make large transactions.
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