The difference between short-selling and long-selling in currency speculation is that long-selling profits from rising currency prices, while short-selling profits from falling currency prices. Specifically, long positions are made by buying low-priced currencies and selling them when the price rises to make a profit; short positions are made by borrowing high-priced currencies, selling them after the currency prices fall and buying them back at low prices to earn the difference.
The difference between the profits of short-selling and long-selling in currency speculation
The difference between the profits of short-selling and long-selling in currency speculation lies in the different profit methods : Going long makes a profit when the currency price rises, and going short makes a profit when the currency price falls.
The profit principle of going long:
The profit principle of short selling:
Income comparison:
Profit methods | 多多 | SHORT |
---|---|---|
COIN PRICE Rising | Coin Price Fall | |
Bullish | Bearish | |
Yes | Yes | |
No upper limit | Determined by the drop in currency price | |
Unlimited | Limited (price at time of purchase) |
Required Note:
The above is the detailed content of The difference in profits between short and long positions in currency speculation. For more information, please follow other related articles on the PHP Chinese website!