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Attention all crypto friends! Those doing $ETH contracts, beware of the trap of opening dual positions! Many people play with dual positions within oscillating ranges, thinking they can profit from both sides, but have you ever considered that this is essentially the same logic as grid trading?
The core of grid trading is to buy low and sell high within a clearly defined oscillating range, accumulating profits through numerous small gains. But it has a fatal flaw—breakouts mean instant loss! The same principle applies to opening dual positions!
This strategy is only suitable for sideways trending markets during specific periods. Once the price breaks above the upper boundary of the range or falls below the lower boundary, initiating a unidirectional trend, stubbornly maintaining dual positions is basically asking for death!
When the price breaks upward, you'll see the strategy continuously sell to take profits, perfectly missing out on the big rally's gains, while your short positions get trapped, forcing you to keep adding margin to stay afloat; when it breaks downward, the strategy blindly buys the dip, causing long positions to remain in floating loss, and you can't escape the need to add margin.
What's the most terrifying part? After a breakout, you'll hold both losing long and short positions simultaneously, falling into an endless lock-in deadlock! On the surface, floating losses are locked in, but in reality, the trouble is just beginning: you not only have to keep paying double margin, but large amounts of capital are tied up and immobile. If the price continues to trend unilaterally, losses will keep expanding; and to unlock positions, you need to accurately judge the trend reversal point—an extremely difficult task!
So, to reiterate: dual position opening (grid trading) isn't impossible to use, but it must meet two prerequisites—clear oscillating range + strict stop-loss mechanisms! For beginners, it's crucial to fully understand the risks of this strategy. Never use it blindly in trending markets, or you may face significant losses!