Situation: You have 500 SUI in spot (purchased at $3.00), and you fear a correction.
Actions:
1. You open a Short futures on SUI/USDC with a volume of 500 SUI (1:1 to spot).
- Entry price: $3.09 (current).
- Leverage: 5x (avoiding liquidation).
- Margin type: Isolated (risk control).
2. Scenarios:
- Price falls to $2.80:
- Loss in spot: `(3.00 – 2.80) × 500 = –100 USDC`.
- Profit on futures: `(3.09 – 2.80) × 500 = +145 USDC`.
➜ Net profit: +45 USDC (hedged).
- Price rises to $3.30:
- Profit in spot: `(3.30 – 3.00) × 500 = +150 USDC`.
- Loss on futures: `(3.30 – 3.09) × 500 = –105 USDC`.
➜ Net profit: +45 USDC (limited risks).
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