What does “Huobi triple short” mean?

08/18/2023 12:26 • Blockchain Briefs • 62 views

What does “Huobi triple short” mean? What does “Huobi short” mean? What does “triple short” refer to? It means that when the market is falling, it will have a significant impact on prices. Shorting during a market uptrend is aimed at protecting oneself from risks.

According to Huobi’s strategy, if Bitcoin falls below $8,000 and there is no new trading volume (such as BTC), going long means selling. However, if BTC falls below this price again, it may result in even greater price losses.

Therefore, we call this method “triple short”. In other words, as long as BTC does not reach above $81,000 and cannot guarantee a return rate of more than 20%, shorting is a profitable action. The conditions of “200%” and “100%” are interchangeable. “175%”, “80%”, “0%” are the differences between the two, but “10%”, “25%” are associated with other assets.

So, the meaning of “triple short” here is: “200%”, “12.5%”, “50%” or “30%”, “31.5%”. In other words, “35%”, “20.5%”, and so on.

For long investors, there are three reasons: (1) they believe there are enough opportunities to close positions, while traders need to wait for a good timing; (2) because there is no reason to buy more BTC, they decide to sell their bitcoins; (3) due to a significant drop in bitcoin prices, sellers withdraw in large numbers, causing prices to plummet rapidly and eventually leading to market liquidation, resulting in investors’ losses.

For example, if there is a token called “0x9ea4d7cda5caf50bce6ba90fade66bd17ccdfed00fe96e” (Huobi contract) appearing in the market to close Bitcoin futures positions. According to this logic, triple short means that long positions are locked, but how much profit can be obtained? It is very simple—if BTC does not rise but falls, the cost of shorting will increase. If BTC continues to decline, one can only choose to wait and see to prevent main funds from entering and grabbing chips, making it difficult for everyone to understand.

Of course, some people think that this is just self-comforting in the market. “Do you think I have made money now?” This answer vividly represents “I have already made a high profit”. Why do I write like this? Because the market sentiment has just started to break out at this time, the market is not yet fully mature.

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What does “Huobi triple short” mean?

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