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What is Long Short (Long as the main, short as auxiliary)

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What is Long Short? What is Long Short?Why do we encounter this situation?In th

What is Long Short (Long as the main, short as auxiliary)

What is Long Short? What is Long Short?

Why do we encounter this situation?

In the traditional financial market, when investors start investing in Bitcoin, they need to pay attention to fundamental changes. However, over time, this concept has become increasingly blurred and no longer applicable to the traditional currency trading field. If it is now a safe haven tool for assets such as gold ETFs or US treasuries, then this will become the mainstream of the current digital encryption market. However, the same problem has also emerged in the financial market in the blockchain and digital currency world-there is no separate company or institution that can provide this information. So, for ordinary people, there is no reason to be skeptical about what they buy; on the contrary, you may see a trend change: prices will fall and people will buy instead of selling. Therefore, if you are a trader and want to engage in some investment activities in commodities, you must be careful with risks!

Many people believe that the price of Bitcoin will drop below $10,000 in the next ten years, but in reality, most people do not think so. They believe that Bitcoin will rise to around $300 million or even higher in 10 years, which is called “long short”.

However, due to the current macroeconomic conditions and the uncertainty of policies in various countries, some short-term speculative funds have entered the Bitcoin futures contract field, resulting in a significant decrease in the premium of Bitcoin spot, and in many cases further decline may occur.

For example, a recent news event, the regulatory authorities in China issued the “Announcement on Preventing Token Issuance Financing and Speculation Activities”, which stated that it will crack down on illegal fundraising, pyramid schemes, and fraud in the name of virtual currency, and reminded users not to participate in various illegal activities.

In addition, the “new round of international capital flows” has been included in China’s foreign exchange control scope. The “New Third Board Reform (December 28, 2019)” officially launched. This is one of the national regional stock transfer system pilot projects led by the central bank. The project aims to solve the trust problem in cross-border settlement. (Note: According to Article 19 of the State Council, the “Opinions on Accelerating the Promotion of RMB Internationalization” and the “Draft for Comments on Promoting Supply Chain Innovation and Application,” and the “Guidelines for the Construction of a Trade Financing Service Platform Based on Blockchain Technology” (hereinafter referred to as the documents)

It is worth noting that the “Guidelines” issued this time are not completely aimed at local enterprises, but instead propose suggestions to deal with new challenges faced by cross-border payments between different provinces and cities. Among them, it mentioned: “Strengthen cross-border business management. Establish an effective mechanism for coordinating cross-border capital flows to ensure that all parties fully allocate relevant resources and allocate funds reasonably.” In addition, in order to allow more people to flexibly and efficiently use technical means in the actual trading process, banks are encouraged to actively explore the development model of blockchain.

Long as the main, short as auxiliary

According to the perpetual contract market of Huobi BTC, as of today, 18:00 (GMT+8), the BTC price is temporarily reported as $9480 (+0.13%), and the settlement funding rate at 20:00 (GMT+8) is 0.010000%.

From yesterday evening till now, Bitcoin has been oscillating and consolidating between $9300-$9400. According to Huobi delivery contract data, the trading volume of BTC quarterly contracts has decreased to a certain extent, and the open interest has decreased with market changes. The proportion of elite long positions has slightly decreased, and the quarterly contract premium has increased slightly. Currently, mainstream currencies are in a downward trend, and BTC still has the risk of continuing to decline; ETH, EOS, and other mainstream currencies are in a low-level narrow adjustment state. The USDT quoted on Huobi Global OT is $7.01, with a premium rate of -0.71%.

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