I cannot understand one thing!

[VasilTodorov]

well we know that each pair can go in buy dirrection for more than 100%, especially gold and crypto can do it easy; but a pair cannot go short position for more than 100% does this mean that buy have more chance to sell?

 

[Polakandil]

It is undeniable that high volatility often occurs in gold and crypto, investors typically like volatility, because without volatility there is no profit, but on the other hand, high volatility has a high-risk potential, often occurs after the price of gold soars and then accompanied by a decline due to possible profit taking. Trading gold without risk management may endanger the trading account.

 

[borzy]

well we know that each pair can go in buy dirrection for more than 100%, especially gold and crypto can do it easy; but a pair cannot go short position for more than 100% does this mean that buy have more chance to sell?

Actually it can go negative but only on futures market, such case was in 2020 in oil futures. Close to expiration of the contract, prices plunged and became negative because nobody wanted to accept delivery due to lack of space to store oil. Holders of futures was forced to sell it free and even pay for that because accepting delivery meant huge costs. In currency market of course it is not plausible scenario because there are no such issues

 

[VasilTodorov]

It is undeniable that high volatility often occurs in gold and crypto, investors typically like volatility, because without volatility there is no profit, but on the other hand, high volatility has a high-risk potential, often occurs after the price of gold soars and then accompanied by a decline due to possible profit taking. Trading gold without risk management may endanger the trading account.

I cannot see how this is about my question but thank you.

 

[Lazarsblck]

I cannot see how this is about my question but thank you.

rofl

 

[Lazarsblck]

Tbh, your conclusion seems ridiculous! Just because short positions for some pairs is limited to 100% that doesn't mean you have a higher chance of winning trader by going long. I'd say that depends on the trend. Let me break it down to ya. Imagine the trend line of a pair shows higher probability of the market going down AKA bearish movement, would still consider going long even tho you have no evidence of the price going up or any relevant news that could change the movement?

 

[Amadeus.V]

That is gambling logic not trading. You can have a trading strategy that only involves buying but that doesn't mean you will be more successful than having a selling strategy or even both. Various factors are to be considered.

 

[Lee.me]

well we know that each pair can go in buy dirrection for more than 100%, especially gold and crypto can do it easy; but a pair cannot go short position for more than 100% does this mean that buy have more chance to sell?

For a pair to go down 100%, you would have to cut the demand to that extent, these "pairs" are currencies being traded in the millions by at least the people of the country the pair originates from, so it is not going to go down like that overnight, unless some government is toppled. Just because buying has theoretically unlimited potential doesn't make it more profitable than selling.