[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


View post   

File: 13 KB, 251x201, BFEE9CA8-890A-4B19-A97A-8EBCBF01BC3C.jpg [View same] [iqdb] [saucenao] [google]
16070416 No.16070416 [Reply] [Original]

does shorting yield the same rois as longing?

>> No.16070438

Yes, but shorting is immoral.

>> No.16070444

>>16070438
t. Bulltard

>> No.16070464
File: 46 KB, 251x201, woah.png [View same] [iqdb] [saucenao] [google]
16070464

>>16070416

>> No.16070475

Let us consider that if we are describing something as "short" or "long", this is relative to the same object. From this, we can assert that long = bigger and short = smaller. From this, we know that long > short, therefore it naturally follows that, by adding "roi" to both sides, roi long > roi short

>>16070464
based

>> No.16070725

>>16070475
I mean if something goes up, you get an roi. If tou short and it goes down by the same percent, do you get the same gains?

>> No.16070764

No serious trader just sits on their bags forever. When the opportunity presents itself they short, then buy back at the dip and long.

>> No.16070818
File: 1.49 MB, 254x226, 1570496508279.gif [View same] [iqdb] [saucenao] [google]
16070818

>>16070416
>>16070464

>> No.16070821

I think it's easier to spot incoming dumps than pumps. Like the descending triangle at 10k. I went all in on shorts and profited hugely. But usually shorts are just to preserve gains.

>> No.16070869

>>16070725
someone answer this

>> No.16070871

A thread died for this

>> No.16071038

>>16070725
depends on what you mean. in the context of bitcoin, if you short you will have more bitcoin and freedom dollars despite the price going down

>> No.16071054

>>16071038
What do you mean "depends what I mean"? I'm being pretty clear.

If I use a 5x leverage with my 5k usd and I long it while btc goes up by say 5%, I get a gain.

If I use a 5x leverage with my 5k usd and I short it while btc goes down by 5%, do I gain the same amount of btc?

>> No.16071091

>>16071054
I don't even know how to calculate a -5℅.

>> No.16071121

>>16070416
depends on how good you are but look at the chart, BTC goes up 70% of the time. Short after ATH or after a blow off top and you'll be rich but you better know when to pull your shorts because BTC bounces hard both ways

>> No.16071132

>>16071054
bruh... no one has answered my fuling question yet.

>> No.16071136

Shorting = increase btc
Longing = increase usd.

>> No.16071142

>>16071132
fuk u, iphone.
*fucking

>> No.16071143

Yes because an asset can go up more then 100% but can only go down 100%

>> No.16071151

>>16071136
...What?? Most exchanges dont even offer the ability to store usd.

>> No.16071153
File: 758 KB, 786x1028, motorcycle.png [View same] [iqdb] [saucenao] [google]
16071153

>>16071132
because your question is so fucking stupid that everybody is assuming that you mean something else. Yes, 5%=5% you fucking nincompoop.

>> No.16071160

>>16071153
I wanted to verify, faggot. My question was very clear.

>> No.16071193

>>16071136
also double wtf. You get btc whether you long or short

>> No.16071200

>>16071151
Are you retarded?

1 BTC Contract short at 9000, price goes to 8000, profit = $1000 or .125 BTC. Value of original equity falls.

1BTC Contract long at 9000, price goes to 10,000, profit = $1000 or .10 BTC. Value of original equity increases.

>> No.16071204

>>16071193
You’re a moron, stick to normiebase pls.

>> No.16071227

>>16071200
>>16071204
Trashcan, you should have specified from the beginning. Get liquidated, bitch

>> No.16071228

>>16070416
>short 50,000 contracts @ 10,000 (5 Bitcoins)
>exit @ 5000
>-50% price drop
>((1/10000)-(1/5000))*-50000 = 5 BTC
>5 * 5000 = 25,000


>long 50,000 contracts @ 10,000 (5 Bitcoins)
>exit @ 15,000
>50% price increase
>((1/10000)-(1/15000))*50000 = 1.66666666 BTC
>1.66666666 * 15000 = 25,000

Returns are linear for fiat but not for Bitcoin. This is known as convexity.

>> No.16071239

>>16071227

Imagine getting liquidated. What does that feel like retard?

>> No.16071246

>>16071239
uhh, I havent gotten liquidated? You tell me, retard

>> No.16071254

>>16071228
huh, that's really weird. Thanks for the answer.

>> No.16071256

>>16071246
Sure you haven’t. You don’t even know the basics of margin trading. I can only imagine how fast you eat through your equity.

>> No.16071267

>>16071256
I dont know the basics to shorting, idiot. Keep coping by believing ive been liquidated tho.

>> No.16071293
File: 263 KB, 1125x2436, 0481A293-0DD4-4E84-B30F-FC97039BF2F6.png [View same] [iqdb] [saucenao] [google]
16071293

>>16071267
You’ve definitely been liquidated.
Keep coping with being poor.

>> No.16071300

>>16071293
I definitely haven't :). Keep copying me though

>> No.16071307

>>16071300
Ok, we believe you.

>> No.16071319

>>16071307
:) good

>> No.16071413

>>16071160
For a move of the same magnitude on a position of the same size, selling nets you a higher percentage change in the asset that you make gains on.
As examples:
Sell 1 BTC at $10k and rebuy at $9k: it was a $1000 move, 10% change in USD price, the USD value of your account did not change, but your BTC count increased more than 11%
Buy 1 BTC at $10k, sell at 11k: it was a $1000 move, 10% change in price, the BTC value of your account did not change, but the USD value increased exactly 10%.
tl;dr different roi

>> No.16071456

>>16071413
There is a maximum underlying asset return rate when longing.

It depends on how much your original position and equity.

$1000 long entry @ $1000, exit @ $150000 = 0.99 BTC return.

>> No.16071495

>>16071456
I didn't think about it in terms of return, thank you for making that distinction.

>> No.16071529
File: 118 KB, 1478x1454, 1563328313037.jpg [View same] [iqdb] [saucenao] [google]
16071529

>>16070871
based