Long vs. Short: Basic Futures Strategies
Long vs. Short: Basic Futures Strategies
Crypto futures trading offers sophisticated opportunities for experienced traders, but the core concepts of “long” and “short” positions are fundamental for anyone entering this market. This article provides a comprehensive introduction to these strategies, designed for beginners. Understanding these positions is the first step towards developing a robust trading strategy and managing risk effectively. We will cover the definitions, mechanics, risk considerations, and basic strategies associated with both long and short positions in crypto futures. Further exploration of advanced topics can be found in resources like Crypto Futures Strategies: 从套利到杠杆交易的全方位指南.
What are Futures Contracts?
Before diving into long and short positions, it’s crucial to understand what a futures contract actually is. A futures contract is an agreement to buy or sell an asset (in this case, cryptocurrency) at a predetermined price on a specific date in the future. Unlike spot trading, where you are exchanging the asset *immediately*, futures trading involves an agreement about a future exchange.
Key characteristics of futures contracts include:
- Expiration Date: The date on which the contract matures and settlement occurs.
- Contract Size: Specifies the amount of the underlying asset covered by one contract.
- Leverage: Futures trading allows traders to control a larger position with a smaller amount of capital. This magnification of potential profits also magnifies potential losses.
- Margin: The initial amount of capital required to open and maintain a futures position.
- Mark-to-Market: Daily settlement process where gains and losses are credited or debited to your account based on the contract's current market value.
Going Long: Betting on Price Increases
A "long" position in futures means you are *buying* a contract with the expectation that the price of the underly
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