What does 'sell to open' mean in the context of cryptocurrency trading?

3 answers

• Dec 30, 2021 · 3 years ago
  When it comes to cryptocurrency trading, 'sell to open' refers to a trading strategy where an investor sells a contract or option with the intention of opening a short position. This means that the investor is selling the contract or option in the hopes that its price will decrease, allowing them to buy it back at a lower price and profit from the difference. It is a way to profit from a bearish market outlook. This strategy can be used in various cryptocurrency exchanges, including Binance and BYDFi.
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• Dec 30, 2021 · 3 years ago
  'Sell to open' is a term commonly used in cryptocurrency trading to describe the action of selling a contract or option to open a short position. It is essentially a way to bet on the price of a cryptocurrency going down. By selling the contract or option, the trader is obligated to deliver the cryptocurrency at a later date if the buyer exercises the contract. This strategy can be employed on different cryptocurrency exchanges, such as Binance and BYDFi.
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• Dec 30, 2021 · 3 years ago
  In the context of cryptocurrency trading, 'sell to open' is a strategy where traders sell contracts or options with the aim of profiting from a decline in the price of a cryptocurrency. This strategy is often used by traders who anticipate a bearish market trend and want to capitalize on it. It can be implemented on various cryptocurrency exchanges, including Binance and other platforms like BYDFi.
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