📜🧾 Trading Wisdom 🧾📜
Are you sure you understand how long and short positions work on Binance? Don't just blindly open positions based on price movements! Let's break it down:
Long Position:
You buy at $2, and the price doubles to $4. With 100 USDT and 10x leverage, your profit would be 1000 USDT (in addition to your original 100 USDT margin).
Short Position:
You sell at $4, and the price drops to $2. But here's the catch: your profit would be 500 USDT, not 1000 USDT. Why the difference?
If you're not aware of this asymmetry, you might be taking on more risk than you think. Make sure you understand the mechanics of long and short positions before trading with leverage!