When trading digital currencies, what distinguishes selling to open from selling to close?

1 answers

• Taylor JohnsonNov 29, 2022 · 3 years ago
  When it comes to trading digital currencies, selling to open and selling to close are two different strategies. Selling to open is the act of selling a digital currency that you don't own, with the expectation that its price will decline. This is often done by traders who believe that the market is going to go down. On the other hand, selling to close is the act of buying back the digital currency that you previously sold. This is done when you believe that the price has reached a level where you can make a profit or limit your losses. So, selling to open is about initiating a short position, while selling to close is about closing that position.
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