Q&A on Handling Future Orders When Losing with Corresponding Orders
#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: