BW.io margin trading officially launched two-way position holding function
BTC stopped falling and rebounded after dropping to a minimum of around 7670 yesterday. This morning, it was blocked after breaking a new high to reach around 8200. It is currently hovering around 8170 and support has been formed at the bottom. As mentioned before at 8000, you can consider more orders before breaking the position. Currently blocked at 8200, yesterday evening to now, it is estimated that the upward momentum has not stopped, technically from 4-hour chart price continues to rise, which has broken through the suppression of the Bollinger Bands. As the space above opens, the trend runs above the 5-day moving average, MACD is above the zero axis. In a comprehensive view, the short-term will continue to explore. Once it breaks the extension above, then the long positions continue to explode, with the short — term pressure above 8400, below support 8000.
Today, the two-way position function has been launched in margin trading on the BW exchange. What function is it exactly? Let me explain to you in detail.
As we all know, the cryptocurrency market is fluctuated, this second you may be happy, the next second you may start to curse. The market is not clear, the amplitude is small, when the volume is thin, had to have no choice but to pass a day and a day, resulting in the use of capital is very low. When the bull market is quietly approaching, with the price to a certain direction breakthrough, the traders often buy high and sell low, and this kind of trading is under a huge risk!
The two-way position opening transaction fully reflects the superiority to deal with sudden market changes. It is risk-free, and can lock in profits at any time, and liquidation and loss does not occur in extreme situations. The initiative to win and lose is in the hands of users, and it is one of the magic weapons to win profit stably for small and medium-sized retail customers.
What is a two-way position holding? Simply saying, it is possible to open long and short at the same time with short and multiple orders, so it becomes a lock-up effect. This way is to reduce risks, losses and profits, and can also be understood as with 0.5 leverage.
Advantages and disadvantages of two-way positions
Advantage:
1. The market direction is unknown, but can be with positions still expected. Unlike one-way position, they often have to endure the huge pressure caused by shocks. There is no bull market but only to observe without position. When the bull market breaks to one side, traders will hesitate and miss to open best the best position to open. Even if you stop loss and backhand, you are facing huge risks.
2. Great pressure highlights human weakness, resulting in too short in holding positions. As we all know, positions established at a reasonable price, the longer held, the more the election of relative profits in the right direction, but because they cannot withstand the normal fluctuations of the market, they often give up halfway, and often become desperate to see the price rising with nothing to do. Two-way positions effectively avoid floating losses due to the pressure, and can be long — term positions.
3. In two-way positions, there is no risk even in full positions (long and short positions are equal), and there will be no liquidation due to extreme market conditions, which greatly improved the efficiency of funds using.
4. In the fluctuated market, traders can earn the spread with two-way positions. The proper operation will not cause losses due to volatility, but can in the volatility reduce the cost of long or short, the greater the volatility, the higher the profit.
Disadvantages:
1. Traders are required to make a clear judgment when the market reverses, and it is also difficult to operate in volatility. Only the operation with accurate judgment about the trend can effectively lock in profits, so traders are required to have excellent psychological quality and good short-term technology.
2. If the market volatility is small, the position is too long and the profit is small.
In two-way position trading, we should review daily and record the daily long and short position costs. Through this method, we can have a general understanding of the methods used by market makers to control the disk and reduce our risk. We need to be bold and careful in the operation. Don’t miss the opportunity when it’s time to do it. Don’t be insatiable and lead to a bloodless end.
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BW, Bit World, Better World
BW.com Global Operations Team
