What is the impact of position equity on the trading of cryptocurrencies?

1 answers

• Daniel MuszkietFeb 19, 2021 · 4 years ago
  Position equity is a concept that is often overlooked in cryptocurrency trading. However, it can have a significant impact on the success or failure of your trades. Let's say you're trading a particular cryptocurrency, and you have a high position equity in that coin. This means you hold a substantial amount of that cryptocurrency compared to other traders. When you decide to buy or sell, your actions can have a ripple effect on the market. Other traders may follow your lead, causing the price to move in the direction you want. On the flip side, if you have low position equity, your trades may have little impact on the market. So, it's essential to consider position equity when making trading decisions in the cryptocurrency market.
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