Don't panic if you are stuck in a position, the following methods may help you get out of trouble

Practical methods for hedging, after reading the following, you may still have a chance

To unwind a trapped position, you need to flexibly consider the position, position ratio, and current market trends. The core principle is to prioritize risk control and avoid further losses. The following are specific unwinding strategies for the current market (fluctuating around $115,000 and with a short-term bearish bias):

1. First clarify the core premise of arbitrage

- If the position exceeds 50% (heavy/full): Prioritize "reducing positions to reduce risk". Regardless of whether you have a long or short position, reduce your position slightly (e.g., 10%-20%) to avoid extreme market fluctuations that trigger a margin call and to preserve capital for subsequent operations.

​

- If the gap between the trapped position and the current price is small (e.g., long position trapped at 116,000-117,000, short position trapped at 113,000-114,000): focus on "short-term correction opportunity"; if the gap is large (e.g., long position trapped above 120,000, short position trapped below 110,000): it is necessary to consider the long-term trend and avoid blindly carrying the order.

2. Targeted operations in a single direction (combined with the current bearish trend)

(1) Long order (e.g., entering the market above 117,000, with a current floating loss around 115,000)

- Short-term opportunities: If the market rebounds to 116,000-117,000 next week (the previous oscillation pressure level, also near the middle track of the Bollinger Band), and pressure signals appear (such as the K-line closing in the negative direction, MACD top divergence), you can reduce some long positions. After reducing the position, set the stop loss for the remaining position at 114,000 (the lower edge of the recent oscillation. If it breaks, the short-term bearish trend will continue).

​

- If it breaks through 114,000: decisively stop loss on the remaining long positions to avoid further losses when it falls to the support level of 112,000-113,000; if it stabilizes and rebounds around 114,000, you can add long positions with a light position to lower the average price, and exit the market as a whole when it rebounds to around 116,000.

(2) Short position (e.g., entering the market below 113,000, with a current floating loss around 115,000)

- Short-term opportunities: If the market drops to 114,000-113,000 (key support level) next week and a stop-loss signal appears (such as a positive K-line and MACD bottom divergence), some short positions can be reduced and the stop loss for the remaining positions can be set at 116,000 (previous resistance level, a break of which will indicate a short-term bullish correction).

​

- If it breaks through 116,000: stop loss on remaining short positions to avoid further losses when it rebounds to 118,000; if it falls back under pressure around 116,000, you can add short positions with a light position to lower the average price and exit the market as a whole when it falls back to around 114,000.

3. General Unwinding Taboos (Avoiding Adding Fuss to Situation)

- Avoid "holding orders without stop-loss": The current market is affected by the macro-interest rate hike expectations and capital deleveraging, and is volatile. Holding orders without stop-loss may cause a small loss to turn into a margin call. Be sure to set a clear stop-loss according to the arbitrage point (114,000 for long orders and 116,000 for short orders).

​

- Avoid "blindly adding to positions": add to positions only when "key support/resistance levels stabilize" (e.g., adding to long positions around 114,000, and adding to short positions around 116,000), and the amount of added positions should not exceed 50% of the original position to avoid further increasing the position.

​

- Avoid frequent operations: If the market has no clear direction (such as narrow range fluctuations) after placing an order, avoid opening and closing positions repeatedly. Wait patiently for key point signals to reduce additional fees and the risk of erroneous operations.

4. Subsequent Risk Warning

Next week, we need to pay close attention to the breakout of the 112,000-113,000 support level and the 116,000-118,000 resistance level. If these levels break, the trend is likely to continue (a break of support suggests a bearish trend, while a break of resistance suggests a volatile trend). Unwinding strategies should be adjusted in real time with market trends. If you lack market judgment, it is recommended to prioritize controlling your positions and avoid emotional trading.