Rolling Positions in Cryptocurrency Contract Trading: An In-Depth Analysis of High-Risk, High-Reward Leverage Trading Strategies
Rolling positions (Pyramiding) in cryptocurrency contract trading is a high-risk, high-reward leveraged trading strategy, centered on using the floating profit of existing positions as margin to continuously add new positions in the same direction, aiming for geometric growth in trending markets. Here is a detailed analysis:
1. The essence and core logic of rolling positions
1. Reinvesting profits
Use the unrealized profit (floating profit) of the current position as margin for the new position, rather than withdrawing the profit.
- Example: Initial capital $1000, 10x leverage to long BTC, floating profit $500 → total margin becomes $1500, continue to open new long positions.