Rolling Up or Down
Adjusting Stake Amounts
Rolling Up or Down strategy lets users adjust their stakes based on market performance. Users can increase their stakes when the market trends favorably to boost profits (Rolling Up) or decrease stakes when the market moves against them to minimize losses (Rolling Down).
Example:
You’re participating in a prediction market where Bitcoin is expected to reach $100,000 in 2024. You start by purchasing shares at a strike price of $65,000. As Bitcoin’s price surges and nears $75,000, you can employ the Rolling Up to amplify your stake. The system will automatically sell your shares at the $65,000 strike price, locking in your principal and profits, and then reinvest those funds into shares with a $75,000 strike price. If Bitcoin ultimately hits $100,000, you’ll reap even greater profits than with your original position.
Conversely, if Bitcoin’s price starts to decline and seems unlikely to hit $100,000, you can use the Rolling Down strategy to reduce your stake, protecting your capital and minimizing potential losses.
Benefits:
Maximized Profits: Capitalize on favorable market trends by increasing your stake.
Minimized Risks: Reduce exposure to potential losses when the market trends unfavorably.
Flexible Position Management: Adapt your strategy to real-time market performance, optimizing your investment.
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