What does “股票空头占优” mean? (What does it mean for short positions to have an absolute advantage?)

08/19/2023 13:44 • Metaverse Matters • 164 views

What does “股票空头占优” mean? What does it mean for short positions to have an absolute advantage? The market’s long-short ratio (VIX) in the stock market refers to investors using indicators of bullishness or bearishness to make investments. When trading in the market, they buy a certain asset at a higher price than its target price, making themselves winners. For example, do you think Bitcoin is a bubble? Or if Bitcoin is a Ponzi scheme? If you think Bitcoin is a bubble, you can set your position to “negative” and then choose to close out the stock.

According to statistical calculations, the cost between one BTC and over 10,000 ETH is approximately $11,000. When BTC exceeds $20,000, this cost value becomes $33,000. So, for many people in the coin circle, it is unnecessary to go long.

What does it mean for short positions to have an absolute advantage?

In the days leading up to Bitcoin’s halving, the market sentiment was very low. However, during this time, a new phenomenon appeared: BTC’s price remained at a high level without any obvious pullback or decline.

This situation occurred because people began to realize that the market was about to come, and the market’s reaction was rapidly and unstably changing. So we should pay attention to and study this phenomenon, and not be blindly optimistic or overly panicked! Regarding the development of such a situation, we can describe it in two words:

First, if the coin price continues to rise and breaks below the $9,000 level, then short positions will have an absolute advantage.

Second, long positions cannot keep up with the overall direction, but the price will still trade within this range (around $10,000), so short sellers don’t need to worry about their chips being sold off.

After discussing the above content, let’s take a look at today’s key news:

This morning, Wu Xiaobo, the host of CCTV’s program “Focus Interview,” said that due to the economic crisis in the United States, the Federal Reserve is taking action to limit inflation and hopes to control economic activity through interest rate hikes. “We don’t know which institution will lower interest rates or when.” After that, Wu told the media, “This is our policy issue.”

Once this news came out, Bitcoin plummeted from around $9,400 and has not reached a new high level since then.

In fact, many friends did ask me last night if I had really made the right call and why I operated this way. My answer may be that I personally hold Bitcoin for a long time and I think there won’t be any big fluctuations in the short term.

However, I think the current trend is still worth looking forward to, especially in recent times. With Bitcoin becoming more and more popular and favored by more people, many investors will focus their attention on safe-haven assets like gold. Especially with Bitcoin’s recent strong performance, many people believe that Bitcoin will be the key support for the next bull market, leading to a sharp decline. However, in reality, there is also a saying in the market that Bitcoin has formed a “global currency system,” with central banks around the world constantly printing money to create wealth. This undoubtedly injects some fresh blood into the entire digital currency field, allowing it to gain a wider range of applications and uses.

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What does “股票空头占优” mean? (What does it mean for short positions to have an absolute advantage?)

What does it mean for short positions to have an absolute advantage?

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