Recently, there have been many volatile contract coins. The contract $RESOLV, newly listed on Binance yesterday, has again exploded the short sellers.
This contract trading volume is fifty times that of spot trading volume; I generally do not recommend opening positions, whether long or short, as it is easy to be liquidated.
But there are many people who enjoy the thrill of high stakes, so today we will analyze a few strategies under extreme fluctuations and see if they can turn losses into profits!
Let's assume a few scenarios and use data tables for an intuitive analysis of the processes of several operating strategies! These assumptions do not constitute investment advice; they are purely analytical!
Let's analyze yesterday's volatile coin $RESOLV! Current price 0.29139, 24h high 0.39! First strategy: Many people do this; after opening a short position and encountering a surge, they do not stop loss but instead increase their position. Open short with 100U margin at a price of 0.2U, doubling the position with every 10% increase! The table lists how many U are needed to avoid liquidation under three, five, ten, and twenty times leverage after several increases.