Long-Short Trading Strategy
If you wish to buy a Bitcoin, for instance, then your account will grow in value as Bitcoin’s price increases. If Bitcoin price decreases, then your account loses value accordingly. Apart from a standard trade (purchase), gmx-capital platform allows you to open a position that will increase in value as the cryptocurrency decreases in price. This is referred to as selling or going short, as opposed to buying or going long.
To calculate the profit or loss earned from a long/short trade, you multiply the size of your position by the difference in points between the price when you opened it and when you closed it. With both long and short trades, profits and losses will be realised once the position is closed.
You can also use leverage to get exposure to a much larger position than with a standard trade (for both long and short), if you are confident about the direction of the market.