Rolling operation and principle (taking $BNB as an example)
Rolling is a high-leverage, high-risk trading strategy that uses profit rolling to increase positions and achieve rapid doubling of funds. Taking $BNB as an example, assuming that a big market is coming at $623:
1. Initial opening: Open 100 $BNB s at $623 with 20x leverage.
2. Profitable position increase: When BNB rises to $654.15, the position doubles to 200 BNB; continue to close the position and open a long position at $654.15, and the position increases to 400 when BNB reaches $686.85.
3. Compound interest effect: By continuously rolling positions, when BNB rises to $1,000, the initial position may have become thousands of BNB, and the income has doubled.
Risks and key points:
• Market judgment: Rolling is suitable for one-sided bull market or extreme pull-ups, such as the rapid rise of BNB. However, a slight correction in the market may lead to a margin call.
• High leverage amplifies risks: A price fluctuation of 5% may lead to a margin call, especially after continuous increase in positions, the risk doubles.
Suggestions:
Although rolling can bring amazing returns, a single failure may result in the loss of all principal. Ordinary investors should try a small amount when the market is clear, and roll at most two or three times, and stop when they see good results. The risk of rolling > digital currency futures > spot, be sure to operate rationally and do not be greedy.
