In today's booming digital currency market, Bitcoin contract trading has become a popular choice pursued by many investors. So, how can you make money by shorting Bitcoin contracts? How to make a profit in this high-risk, high-return market? This article will delve into these issues and reveal the profit code of Bitcoin contract trading for you.

First of all, it is crucial to understand the basic principles of Bitcoin contract trading. Bitcoin contracts are derivatives that allow investors to trade by predicting the rise and fall of Bitcoin prices. When shorting Bitcoin contracts, investors can profit by borrowing Bitcoin and selling it immediately, and then buying Bitcoin back when the price falls. This shorting strategy is particularly effective when the market falls, but it also comes with higher risks.

Secondly, in order to make a profit in shorting Bitcoin contracts, investors need to have keen market insight and good risk control capabilities. When choosing to short, it is necessary to determine the best entry point by analyzing and predicting market trends. For example, when technical indicators show that Bitcoin prices may have a downward trend, this is an ideal time to short. In addition, timely stop loss is also an important means to protect investment funds and avoid large losses due to price fluctuations.

In addition, understanding market sentiment and capital flows is also an important factor in shorting Bitcoin contracts. Investors can grasp market sentiment and adjust trading strategies in a timely manner by paying attention to market news and social media opinions. At the same time, paying close attention to capital flows can help investors predict market trends and seize trading opportunities.

Finally, in order to make profits in shorting Bitcoin contracts, investors need to maintain a calm and rational mentality and avoid being swayed by market sentiment. In a highly volatile market, emotional trading often leads to blind following and over-trading, which in turn leads to losses. Therefore, it is crucial to establish your own trading plan and risk management strategy, and a sound trading strategy can help investors make steady profits in Bitcoin contract trading.

In short, shorting Bitcoin contracts is not an easy task, but through in-depth market analysis, good risk control and a rational trading mentality, investors have every opportunity to achieve steady profits in this high-risk and high-return market. Dig into the profit code of Bitcoin contracts, seize trading opportunities, and bravely face market challenges. I believe you will be able to get rich returns in Bitcoin contract trading.

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Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Bitcoin contract is a kind of digital asset trading derivative. It refers to the contract transaction with Bitcoin as the underlying asset. In fact, the contract transaction of digital assets is similar to ordinary contract transaction. Both require investors to judge the direction of price fluctuations and earn the difference through correct judgment. Contract trading has always been a popular derivative service in the digital currency market, especially Bitcoin contracts. Many people hope to make profits by going long or short on Bitcoin contracts. Contract trading has always been very attractive to investors. However, there are still many novices who don’t know how to make money by going long or short on Bitcoin contracts? How to make a profit? Let the editor of the currency circle tell you about it.

 How to make money by going short on Bitcoin contracts?

In the contract transaction of digital assets, we can choose to go long or short on the underlying asset to make a profit according to the price fluctuations of the market.

Going long means that investors expect the market to rise in the future and buy a certain number of digital asset bullish contracts.

Taking Bitcoin contract trading as an example, we buy a contract worth 1 Bitcoin when the price of Bitcoin is $5,000 per coin. If the price of Bitcoin rises to $5,500 per coin, we will sell a contract worth 1 Bitcoin and get a profit of $500.

In contrast, short selling means that investors expect the market to fall in the future and sell a certain number of bearish contracts for digital assets.

Taking Bitcoin contract trading as an example, when the price of Bitcoin is $5,000 per coin, we sell a contract worth 1 Bitcoin. If the price of Bitcoin falls to $4,500 per coin, we buy a contract worth 1 Bitcoin and get a profit of $500.

Investing in spot trading means that you can only make a profit when the spot price rises; investing in contract trading means that you can make a profit by going long or short regardless of whether the price of the underlying asset fluctuates up or down.

 Bitcoin contract rules

1. Trading time

Contract trading is 724 hours trading, and trading will only be interrupted during settlement or delivery at 16:00 (UTC+8) every Friday. In the last 10 minutes before delivery, the contract can only be closed, not opened.

2. Transaction Types

Transaction types are divided into two categories, opening and closing positions. Opening and closing positions are divided into two directions: buying and selling:

Buying to open long (bullish) means that when the user is bullish or bullish on the index, a certain number of contracts are newly purchased. After the "buy to open long" operation is carried out, the long position will be increased after the matching is successful.

Selling to close long (closing long orders) means that the user is no longer bullish on the future index market and the sold contracts are covered, and the current bought contracts are offset and exit the market. After the "sell to close long" operation is carried out, the long position will be reduced after the matching is successful.

Selling to open short (bearish) means that when the user is bearish or bearish on the index, a certain number of contracts are newly sold. After the "sell to open short" operation is carried out, the short position will be increased after the matching is successful.

Buying to close short (closing short orders) means that the user is no longer bearish on the future index market and the bought contracts are covered, and the current sold contracts are offset and exit the market. Perform the "buy to close short" operation, and the short position will be reduced after the match is successful.

3. Order method

Limit price order: The user needs to specify the price and quantity of the order. Limit price order can be used for both opening and closing positions.

Counterparty price order: If the user chooses to place an order at the counterparty price, the user can only enter the order quantity and cannot enter the order price.

The system will read the latest counterparty price (if the user buys, the counterparty price is the sell 1 price; if it is a sell, the counterparty price is the buy 1 price) at the moment of receiving this order, and issue a limit price order for this counterparty price.

4. Position

After the user opens a position and completes the transaction, he has a position, and the positions in the same direction of the same contract will be merged. In a contract account, there can be a maximum of 6 positions, namely, long positions of the current week's contract, short positions of the current week's contract, long positions of the next week's contract, short positions of the next week's contract, long positions of the quarterly contract, and short positions of the quarterly contract.

5. Order restrictions

The platform will limit the number of positions held by a single user for a certain period of contracts and the number of orders for opening/closing a single position to prevent users from manipulating the market.

Through the above introduction, I believe that everyone has already understood the question of how much money to invest in Bitcoin contracts at least. The editor of the currency circle reminds investors that when trading Bitcoin contracts, the most taboo is to be indecisive. Therefore, if the investor's trend chart and technical operation system do not show that the market fluctuations are reversing, investors do not have to buy or sell with the majority, but should stick to it. When the market trend is not clear, it is best to wait and see.

In summary, this is the answer to the question of how to make money by shorting Bitcoin contracts brought to you by the editor of the currency circle. I hope that all investors can understand the relevant content of Bitcoin contracts more comprehensively and quickly through this introduction by the editor of the currency circle. The editor of the currency circle would like to remind all investors that although the rules of Bitcoin contracts do not seem complicated, only when you actually operate them will you find that there are still many twists and turns. So if you are still a novice in the currency circle, don’t try it easily. After all, the risk of contract trading is still relatively large, especially after adding leverage, the risk will double, so everyone must be cautious.

Furthermore, the use of leveraged trading is a major feature of shorting Bitcoin contracts and one of the keys to profitability. Through leveraged trading, investors can borrow funds to trade, thereby magnifying the opportunity to make profits. However, leveraged trading is also accompanied by higher risks, and investors need to operate with caution to avoid the risk of losses caused by excessive leverage.