In the contract trading of digital assets, we can choose to go long or short to obtain profit according to the price fluctuations of the market.
1. Going Long:
It refers to investors who expect that the market will rise in the future and buy a certain number of digital asset spot index contracts.
Take Bitcoin contract trading as an example. When the price of Bitcoin is USD$5,000, we buy a contract worth 1 Bitcoin. If the price of Bitcoin rises to USD 5,500 per coin, we will sell a contract worth 1 Bitcoin to obtain a profit of USD $500.
2. Going Short:
It refers to investors who expect the market to fall in the future and sell a certain number of digital asset spot index contracts.
Take the Bitcoin contract transaction as an example. We sell a contract worth 1 Bitcoin when the price of Bitcoin is USD$5,000 each. If the price of Bitcoin drops to USD$4,500 each, we buy 1 Bitcoin worth of Contract, and you can get a profit of $500.
Investing in spot transactions means that profits can only be made when the spot price rises; In futures contract trading, reguardless of price fluctuation, one can still make profits by going long/short.