I remember asking a similar question about 4 years back, and I got some pretty useful responses in the thread, and I learned something new ---> longing vs Shorting, Why is there a huge difference in percentage ROI? I had a bit of mathematical confusion, and this answer helped me see the light. Perhaps it might help someone else Just a mere 9,000 Fun88vip profit vs 90,000 Fun88vip profit for holding positions through the same price ranges but in different directions (1 to 0.1 vs 0.1 to 1) Just to be on the same page: LONG 1- 10 000$ investment in 0.1$ Fun88vip = 100 000 Fun88vip. 2- Fun88vip goes to 1$. 100 000 Fun88vip = 100 000$ 3- Profit = 100 000$ - 10 000$ = 90 000$ SHORT 1- 10 000$ to short 1$ asset - you borrow 10 000 Fun88vip and sell. 2- Fun88vip goes to 0.1$. buyback 10 000 Fun88vip for 1 000$ 3- Profit = 10 000$ - 1000$ = 9 000$ As you can see its both 10 000$ position (1000$ on 10x leverage) but one is 100 000 Fun88vip long and the other one is 10 000 Fun88vip short. So its not that traders "are holding positions against each other" because one trade is opened at 0.1$ and the other one is opened at 1$ weeks after. One trade is 100 000 Fun88vip, other is 10 000 Fun88vip. fun fact - "In April, an oversupply of oil led to an unprecedented collapse in oil prices, forcing the contract futures price for West Texas Intermediate (WTI) to plummet from $18 a barrel to around -$37 a barrel."
I remember asking a similar question about 4 years back, and I got some pretty useful responses in the thread, and I learned something new ---> longing vs Shorting, Why is there a huge difference in percentage ROI? I had a bit of mathematical confusion, and this answer helped me see the light. Perhaps it might help someone else Just a mere 9,000 Fun88vip profit vs 90,000 Fun88vip profit for holding positions through the same price ranges but in different directions (1 to 0.1 vs 0.1 to 1) Just to be on the same page: LONG 1- 10 000$ investment in 0.1$ Fun88vip = 100 000 Fun88vip. 2- Fun88vip goes to 1$. 100 000 Fun88vip = 100 000$ 3- Profit = 100 000$ - 10 000$ = 90 000$ SHORT 1- 10 000$ to short 1$ asset - you borrow 10 000 Fun88vip and sell. 2- Fun88vip goes to 0.1$. buyback 10 000 Fun88vip for 1 000$ 3- Profit = 10 000$ - 1000$ = 9 000$ As you can see its both 10 000$ position (1000$ on 10x leverage) but one is 100 000 Fun88vip long and the other one is 10 000 Fun88vip short. So its not that traders "are holding positions against each other" because one trade is opened at 0.1$ and the other one is opened at 1$ weeks after. One trade is 100 000 Fun88vip, other is 10 000 Fun88vip. fun fact - "In April, an oversupply of oil led to an unprecedented collapse in oil prices, forcing the contract futures price for West Texas Intermediate (WTI) to plummet from $18 a barrel to around -$37 a barrel."

I remember asking a similar question about 4 years back, and I got some pretty useful responses in the thread, and I learned something new ---> longing vs Shorting, Why is there a huge difference in percentage ROI? I had a bit of mathematical confusion, and this answer helped me see the light. Perhaps it might help someone else Just a mere 9,000 Fun88vip profit vs 90,000 Fun88vip profit for holding positions through the same price ranges but in different directions (1 to 0.1 vs 0.1 to 1) Just to be on the same page: LONG 1- 10 000$ investment in 0.1$ Fun88vip = 100 000 Fun88vip. 2- Fun88vip goes to 1$. 100 000 Fun88vip = 100 000$ 3- Profit = 100 000$ - 10 000$ = 90 000$ SHORT 1- 10 000$ to short 1$ asset - you borrow 10 000 Fun88vip and sell. 2- Fun88vip goes to 0.1$. buyback 10 000 Fun88vip for 1 000$ 3- Profit = 10 000$ - 1000$ = 9 000$ As you can see its both 10 000$ position (1000$ on 10x leverage) but one is 100 000 Fun88vip long and the other one is 10 000 Fun88vip short. So its not that traders "are holding positions against each other" because one trade is opened at 0.1$ and the other one is opened at 1$ weeks after. One trade is 100 000 Fun88vip, other is 10 000 Fun88vip. fun fact - "In April, an oversupply of oil led to an unprecedented collapse in oil prices, forcing the contract futures price for West Texas Intermediate (WTI) to plummet from $18 a barrel to around -$37 a barrel."

I remember asking a similar question about 4 years back, and I got some pretty useful responses in the thread, and I learned something new ---> longing vs Shorting, Why is there a huge difference in percentage ROI? I had a bit of mathematical confusion, and this answer helped me see the light. Perhaps it might help someone else Just a mere 9,000 Fun88vip profit vs 90,000 Fun88vip profit for holding positions through the same price ranges but in different directions (1 to 0.1 vs 0.1 to 1) Just to be on the same page: LONG 1- 10 000$ investment in 0.1$ Fun88vip = 100 000 Fun88vip. 2- Fun88vip goes to 1$. 100 000 Fun88vip = 100 000$ 3- Profit = 100 000$ - 10 000$ = 90 000$ SHORT 1- 10 000$ to short 1$ asset - you borrow 10 000 Fun88vip and sell. 2- Fun88vip goes to 0.1$. buyback 10 000 Fun88vip for 1 000$ 3- Profit = 10 000$ - 1000$ = 9 000$ As you can see its both 10 000$ position (1000$ on 10x leverage) but one is 100 000 Fun88vip long and the other one is 10 000 Fun88vip short. So its not that traders "are holding positions against each other" because one trade is opened at 0.1$ and the other one is opened at 1$ weeks after. One trade is 100 000 Fun88vip, other is 10 000 Fun88vip. fun fact - "In April, an oversupply of oil led to an unprecedented collapse in oil prices, forcing the contract futures price for West Texas Intermediate (WTI) to plummet from $18 a barrel to around -$37 a barrel."