Derivative trading is an issue that has recently gained considerable popularity globally. Events such as the r/wallstreetbets scandal and the growing popularity of Bitcoin have effectively attracted investors’ attention to this form of investment. Crypto derivatives trading is still a kind of novelty. Today, however, we will look at it and check if and how much you can earn on it.
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When you open a Long position, you are essentially buying an asset from the market. And when you close your position, you are selling it back to the market.
A short position takes advantage of markets that are falling in price. When you enter a short trade, you are effectively selling a borrowed asset with the intention to repurchase it at a reduced price should the market trade lower.