What should I do if my long contract position is trapped? This is a problem that everyone will face and is very concerned about, without exception!

In fact, the common methods for getting out of a bad position are quite simple. Mastering the following techniques can come in handy at crucial moments.

Cutting through the chaos

If the cryptocurrency you hold continues to decline in price without any signs of reversal, then do not hold onto false hopes. You must decisively cut your losses and exit. At the right time, you can even consider opening a short position. Remember, stubbornly holding on will only trap you in a worse situation, causing your losses to keep expanding.

High sell, low buy

When the market is in a volatile state, the price of coins will fluctuate up and down. At this time, we can use this volatility to reduce costs. The specific approach is to sell part of your holdings when the price rebounds to a relatively high point; when the price pulls back to a relatively low point, buy back the portion you sold. By repeating this operation, you can effectively lower your holding costs.

Lowering costs

When you assess that the cryptocurrency price is nearing a temporary bottom, you can appropriately increase your position. The purpose of this action is to lower the overall holding cost by increasing the quantity purchased. Once the price rebounds subsequently, exit in time to take profits. However, determining the bottom requires certain experience and market analysis skills, so proceed with caution.

Short hedging

If your long position is deeply trapped, and although the current price is still falling, you analyze that there is still an opportunity for future price increases, then you can adopt a short position strategy. It is important to note that the number of short positions should exceed that of long positions, so that profits from shorting can offset losses from the long position.

In summary, when engaging in contract trading, be sure to set your take profit and stop loss in advance. During the trading process, do not be overly greedy and miss out on take profit opportunities; nor should you hesitate to stop loss when necessary, which could lead to further losses.