Hello!
hello everyone~
example, if you open a short position of the BTC futures and anticipate that the price will go down in the longer timeframe, but in the meanwhile, you also want to open a long position for a shorter time frame, you won’t be able to open positions in both directions at the same time. Opening positions in both directions would result in canceling one another out.
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You could open long BTC (actual underlying BTC, NOT long futures contract) to hedge until your "shorter time frame" is over… then close the hedge and do whatever you need to do bud.
For more detailed info, look up “John Hull Options, Futures, and Other Derivatives” online, find a pdf of it, and read the chapter on hedging using futures… I believe it's ch.3?
share me ur reading list
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