How to Hold a Long and Short Position at the Same Time on YouHodler

At the time of writing this article, the cryptocurrency market is experiencing bullish momentum that looks to be continuing in the near future. However, despite what many “Twitter traders” say, crypto doesn’t only go up. Every day, we see peaks and valleys within the market, much like the teeth of a saw. With each positive or negative price movement comes an opportunity for you to profit. YouHodler’s Multi HODL tool offers a unique advantage in this case as it lets you hold a long and short position at the same time in order to prepare yourself for any situation. Here’s how to do it. 

Hold a long and short position at the same time with Multi HODL lock trading

In traditional finance, a “lock” is simply the name for when you hold two or more positions at the same time in various directions with the same account. This is actually not possible in the stock market which is why Multi HODL has a huge advantage over traditional trading. Lock trading on YouHodler has a variety of uses cases such as:

1. A unique trading strategy

2. A method of saving a losing position

3. Using it as a “stop-loss” 

Using the “UP” or “DOWN” buttons on Multi HODL means you can open a “long” Multi HODL or a “short” Multi HODL but for the sake of simplicity, we’ll just call them up or down positions.

Save your losing position with a “down” position

In current market conditions, it may be tempting to set your Multi HODL on “up” with the maximum multiplier amount and hold on to the rocket as it blasts to the moon. However, plans like that don’t always execute correctly. Even in a bullish market, there are major corrections that threaten to liquidate your “UP” Multi HODL in a blink of an eye. That’s where there lock trading strategy can come in handy. 

Since Chainlink (LINK) is the hot topic of the month, let’s use that as an example. Let’s say you open a UP Multi HODL position using LINK/USDT. Since LINK is having such a bullish couple of months, you expect the price to go up. However, LINK has other plans. Soon after opening your UP position, the price of LINK falls. Now, you have two options here.

You could just let the price keep falling and watch your UP position lose more money, or you could do something about it. Thankfully, Multi HODL allows you to have more control over your positions with the ability to open multiple positions. In that case, you could instead open a DOWN position. That way, if the price keeps declining, your DOWN positions will generate profit, and the UP position, which is already a loss, will stop growing. 

As you see, the price of LINK continued to drop, hence, the difference between the two orders is where you profit. Imagine if you just keep the UP position open. The losses would have been much more significant and there would be no profit. 

Cover your losses and then profit with Multi HODL “DOWN” position

Have you ever heard the saying “when life gives you lemons, make lemonade?” Well, that’s exactly what the short position is for in Multi HODL. The reason we allow Lock Trading on Multi HODL is that we don’t want our clients to be trapped in a linear state of mind. We want them to have the option to open multiple positions at once so they have the best chance of profiting.

Instead of opening a “UP” position, watching the market go down, and accepting your losses, do something about it. Open a “DOWN” position to short the market and cover your losses. On top of that, you can make even more moves to profit further beyond your losses. Let’s take the image example up above one step further. 

As you can see here, the first “UP” position is a loss but the losses are covered with the profit of the DOWN position short. Closing the DOWN Multi HODL at the lowest point means you exited the market with the profit. Then, it’s just a matter of waiting for the right time to enter the market again for another short position. “DOWN” position number two comes at the peak of that weak rebound fakeout, followed by more negative price movement. By the end of the 24-hour cycle, the client is left with a profit due to his/her shorting techniques and Multi HODL’s ability to open multiple positions all at once. 

This is a prime example of how even in bull markets, short positions can still be profitable. Just remember you have options in the many opportunities that present themselves on an hourly and daily basis. Use Multi HODL to take advantage of these opportunities so you can profit at every turn.

Furthermore, we even allow you to set your own margin call “stop-loss” or Take Profit amounts you don’t have to spend all day waiting for the right time to exit the market.  So visit us today to give the Lock Trading strategy a try and see how effortless it is to play with the market. 

TRY LOCK TRADING ON YOUHODLER NOW