#tradefutures

$ADA

Question: I opened a Long position at $0.69. At what price do I need to open the corresponding position, and what volume should I use?

Answer: You are holding a Long position in ADA at $0.69. To open a corresponding position (Short) for risk hedging or to lock in profits, we need to identify two main factors.

1. Target for opening a corresponding position (Short)

There are 2 scenarios:

A. Risk hedging (if the price drops)

  • Open Short when the price breaks the nearest strong support, that is when:

    • ADA breaks below $0.68 (this is an important support level according to technical analysis).

  • Suggested price to open a Short position: $0.675 or lower, when a candle closes below the $0.68 area with confirmed volume.

  • Stop loss for the Short position: $0.695 (if the price returns to the initial buying area).

  • Take profit for the Short position: $0.64 – $0.65.

B. Locking in profits (if the price has gained)

  • Open Short at strong resistance when the price is near $0.72 – $0.73.

  • This is how to 'lock' in profits if you are unsure ADA will break out of the resistance area.

2. Volume for the corresponding position

Depending on your goal:

  • Want to lock in all profits/risks: enter 100% of the current Long position volume.

  • Want to hedge partially (soft hedge): enter about 30–50% of the Long position volume.

    For example: if you are Long 1,000 ADA at $0.69, you can Short:

    • 1,000 ADA if you want to 'freeze' the entire position.

    • 300–500 ADA if you only want to reduce risk in the short term.

Suggested short-term strategy

  • If ADA drops below $0.675, open a 100% Short to avoid deep losses.

  • If ADA rises to $0.72, consider Shorting 50–100% to lock in profits if you do not want to exit the Long position.