Categories
13. Trading Style

Bitcoin hedging strategy

Hedging bitcoin means mitigating your exposure to risk by taking an opposing position to one you already have open. You’d do this if you were concerned about the market moving against you. For example, if you owned some bitcoins but were concerned about a short-term drop in their value, you could open a short position on bitcoin with CFDs. If the market price of bitcoin falls, the gains on your short position would offset some or all of the losses on the coins you own.

Bitcoin trading: hedging

Leave a Reply

Your email address will not be published. Required fields are marked *