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To hedge or Not to hedge

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@bitrocker2020
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Just not too long ago Binance Futures introduced Hedge Mode. What this meant is that you are now able to two orders in opposite direction on the same pair.

Why on earth would you want to do that ?

Well .. simple fact is that with markets being very volatile, where you have up and down swings very frequently you would be able to take advantage of both sides very quickly.

So with Hedging mode you could setup your pairs something like below. In that scenario, if the price drops to 0.02530 a buy order is then executed. It would then close at >= 0.2539 with a trailing of 2%.

Alternatively it would also start opening a Short once it reaches 0.2537 and close at 0.2530 with a trailing of 2%.

Of course a lot of other factors could go wrong and you would end up going in the opposite direction however the important thing is that you do your research first prior of placing the orders. The hardest part of trading is normally to find the right entry point and how much risk you want to take.

Cheers all and have a great day !