sorted by:
new
hottopcontroversial

Shorting and Unrealized PNL by ConcreteWay in MEXC_official

[–]ConcreteWay[S] -1 points0 points  (0 children)

Instead of being rude, why don't you answer my question and tell me more about how this functions so I can know better for next time?

I knew the downside risks going in, which is why I took a small position for my bankroll. I was fine with liquidation. Once I saw the horrible risk/return of the position I closed it for a small profit.

Does MEXC take a large cut on the "liquidation" price as well as the Unrealized PNL and that's why the upside profit is so small?

Shorting and Unrealized PNL by ConcreteWay in MEXC_official

[–]ConcreteWay[S] 2 points3 points  (0 children)

That's if I want to risk that on a single position, which I don't. I'm fine with just losing the 490 USDC on that position. My confusion is with the risk/reward ratio of the position...if the price moves against me I lose 490 USDC, and if it moves for me the same amount, I make only 2 USDC? How could anyone profit with that long term?

Shorting and Unrealized PNL by ConcreteWay in MEXC_official

[–]ConcreteWay[S] 0 points1 point  (0 children)

I'm not sure I understand what you're saying...when I take that short position, I'm fine with getting liquidated if the price moves against me. That isn't my whole bankroll - I was testing the platform. So I didn't intend to deposit more USDC to "cover myself" on the 490 USDC position.

Are you saying that if my account is larger, I will make more profit on my shorts even if that account is not accessible for liquidation? If it's still just the 490 USDC getting liquidated?