How to make money in currency contracts? A list of tips for double contracts in the currency circle

The core methods of profitability in currency circle contracts include: 1. Trend tracking and band operations, driving profit through technical analysis and news surface; 2. Arbitrage and hedging strategies, using cross-platform price spreads and options hedging; 3. Reasonable use of leverage, adjusting leverage multiples according to market fluctuations; 4. Risk control, setting stop loss and take profit and managing positions.

1. The core method of profitability of currency circle contracts

1. Trend tracking and band operation

   • Technical analysis: judge market trends through technical indicators such as K-line chart, moving average, and MACD, and open positions with the trend. For example, go long when breaking through key resistance levels and short when falling below support levels.

   • News-driven: Pay attention to policies, industry hotspots (such as Bitcoin ETF passes, regulatory dynamics) or major project updates, and make profits by taking advantage of short-term volatility.

2. Arbitrage and hedging strategies

   • Cross-platform spread arbitrage: Capture the price difference between different exchanges, such as the price difference between DEX and CEX, buy low and sell high.

   • Option hedging: For example, holding both long and put options in contracts, you can make profits regardless of whether they rise or fall. If Bitcoin rises, the contract profit covers the option cost; if it falls, the option income offsets the contract loss and ultimately arbitrage.

3. Rational use of leverage

   • Leverage can amplify returns, but it needs to adjust the multiple based on market volatility. For example, if the volatile market uses 5-10 times leverage, the unilateral market can be moderately improved, but strict stop loss needs to be set.

4. Risk control

   • Stop loss and take profit: Each transaction has a preset stop loss point (such as 5% of the principal) to avoid holding orders and exploding positions.

   • Position management: A single position shall not exceed 10% of the total funds, diversifying investment and reducing risks.

2. Skills for double contracts in the currency circle

1. Fluctuating market bulls and bears double kills

   • When the price fluctuates violently, switch long and short positions at high frequency. For example, Liang Xi used the "long and short double-handed" strategy to make a short profit of one million US dollars through the "long and short double-handed" strategy during ETH oscillation.

2. Option hedging strategy

   • Case: When Bitcoin is currently priced at $30,000, it opens a 10x leverage long order (10,000 USD principal), and buys 5 put options (200 USD each).

     • Up 1%: The contract profit was $2,000, the option loss was $500 (after closing the position), and the net profit was $1,500.

     • 1% decline: contract loss of $1,000, options profit of $1,500, and net profit of $500.

3. Event-driven game

   • Take advantage of market sentiment fluctuations before and after major events (such as presidential speeches and Federal Reserve policies) to make arrangements in advance. For example, a giant whale increased its position in BTC long positions before the president's speech, making a profit of US$6.83 million in 24 hours.

4. High leverage and accurate bottom-buy and escape top

   • Capture reversal signals in extreme market conditions. For example, when BTC plummets to a key support level, buy at the bottom with 50 times leverage and rebounds by 5% to achieve a 250% return, but strictly stop loss is required.

3. Practical suggestions and risk warnings

1. A guide to avoid pits for beginners

   • Avoid blindly opening high leverage (more than 20 times), and give priority to accumulating spot trading experience.

   • Be wary of the publicity of "stable earning strategy", any strategy needs to be combined with real-time market verification.

2. Platform selection and tool assistance

   • Choose a platform with high liquidity, safety and compliance (such as Binance and OKX), and use grid trading and stop-profit and stop-loss tools to automate operations.

3. Long-term learning and mentality management

   • Continue to learn technical analysis and fundamental research, and join the community to obtain real-time information.

   • Overcome greed and fear, and avoid frequent trading or retaliatory increase.

4. Risk warning

   • The probability of loss in contract trading exceeds 90%, and high leverage may lead to a liquidation and return to zero.

   • Be wary of black swan events (such as exchange downtime and policy changes) and reserve emergency funds.

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