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by lottin 1402 days ago
Not really, you can be long in one market, and short in the derivatives market, and your net position be short. You'd be holding eth, but you'd be short.
1 comments

not really, in that case you have two separate positions, one long and one short.
If you make money when the price goes down then your overall position is short.

The point is that it can be profitable to crash the price even though you're holding the asset at the same time.

> it can be profitable to crash the price even though you're holding the asset at the same time.

in that case, the less you hold the more profitable it is. I'm not sure I get your point...

The point is that your assumption

> If you own a large amount of a currency, you want to ensure that the currency in question is trusted, or otherwise that currency would end up losing its value.

is fundamentally flawed. You can own a large amount of a currency and profit from it losing its value.

OK, now I see what you mean, yes I agree with you then. But I think you are trying to generalise my comment - it wasn't an absolute statement, I was just trying to tell parent that in my opinion they misunderstood the grandparent's point.