Spot, shot, hedge, and future, these are names of jinn and not a charm or a Chinese proverb
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Square-Creators-000000010331
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I just followed this wallet that opened a massive Short position on Bitcoin, with a total amount of over 331 million dollars.
But notice that it has been reported 94 times 😅 When I looked into it a bit, I found that those reporting it might be the exchanges because it opened a position with a large amount for hedging, but the exchanges consider this manipulation that could negatively affect price movements.
Do you know what hedging means?! It means that there is an entity that invested in Spot currencies 🪙 but is worried about a market drop and does not have the patience to wait for the market to rise again, so it simply opens Short positions to profit if the market does drop. If the market rises, it profits from its Spot investments and closes the Future positions.
But notice that it has been reported 94 times 😅 When I looked into it a bit, I found that those reporting it might be the exchanges because it opened a position with a large amount for hedging, but the exchanges consider this manipulation that could negatively affect price movements.
Do you know what hedging means?! It means that there is an entity that invested in Spot currencies 🪙 but is worried about a market drop and does not have the patience to wait for the market to rise again, so it simply opens Short positions to profit if the market does drop. If the market rises, it profits from its Spot investments and closes the Future positions.
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