The Truth About Rolling Positions: A High-Risk, High-Return Gamble

Rolling positions can achieve astonishing returns, not because the technique has a unique magic, but essentially because it is a floating profit and increasing position strategy, keeping the position long-term exposed to high risks, thereby amplifying potential returns.

In regular trading, once a position is opened and the price moves in a profitable direction, if it moves away from the opening price into the profit zone, the risk quickly decreases.

However, under the rolling position model, while profits do not reduce risk, continuous position increases keep the position in a high leverage, high volatility state.

This extreme risk management approach is the intrinsic driving force behind rolling positions achieving high returns.

In the trading market, the correlation between risk and return is an unshakable iron rule.

When seeing someone achieve hundreds or even thousands of times high returns from a single trade, it is essential to understand the extremely high risk of total loss hidden behind it.

Conversely, some may make millions from a single trade, but considering their capital size, it might just be a relatively low-risk layout that fits their capital situation.

Therefore, the core of trading lies in deeply understanding risk; one cannot focus solely on returns. Only by balancing risk and return can one move forward steadily in the trading market.

To learn more about cryptocurrency-related knowledge and cutting-edge news, click on the avatar to follow me. I offer free sharing of contract trading skills and daily insights.