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cover a short position pepe unchain Bnb Eth XRP crypto futures coinbase futures binance futures
Short covering refers to the process where short sellers buy back the borrowed shares to close their short positions. A short covering rally occurs when a large number of short sellers simultaneously cover their positions, pushing up the price of the stock. Short selling involves selling borrowed shares expecting the price to fall, then buying them back at a lower price to profit. Short sellers must cover their positions when they anticipate a price increase to avoid losses.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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