What is rolling position in the cryptocurrency market?

Rolling position refers to a trading strategy in contract trading where positions are constantly opened and closed, leveraging market volatility to achieve gradual profits. The basic logic is to continuously buy, close positions, and then buy again to amplify returns, aiming to gain significant profits when the market trend is favorable.

Rolling position operations typically involve using small capital to gradually increase positions through multiple small investments. For example, if you have between $300 and $400 in funds, you might choose to invest $10 each time, using 100x leverage, to gradually increase your position. This strategy takes full advantage of the market's high volatility; as long as the market trend is correctly assessed, significant amounts of funds can be accumulated in a short time.

Rolling position operations are not a guaranteed way to make money. High-frequency trading means higher transaction costs, and a small mistake can lead to a loss of all efforts. Additionally, the market is ever-changing; a slight misjudgment can result in being caught in a reverse trend, falling into a vicious cycle of increasing losses. The risks of rolling position operations mainly stem from the amplification effect of leveraged trading; once the market experiences severe fluctuations, rolling position risks can easily be triggered.