The good news is that a deal has recently been reached between the United States and Iran, and a permanent ceasefire has been established. A formal peace agreement between both sides is expected on Friday.
As a result, financial markets have reacted positively, with cryptocurrencies and precious metals leading the gains and showing strong upward price movement.
In such a situation, a bullish scenario is possible. However, nothing can be taken for granted because this conflict has been ongoing for almost three to four months. Sometimes it stops, and sometimes it starts again. Because of this uncertainty, the market remains highly volatile.
To take full advantage of this volatility, I have a strategy that can help generate income in a relatively short period. If you are interested then continue to read till the end..
The strategy is very simple. You only need to keep a few important points in mind and approach the market accordingly. By doing so, you can potentially benefit from volatility and capture profitable opportunities.
So far, Bitcoin and other precious metals have already experienced a pump of around 5–6%, resulting in a strong upward move. At this point, there are two possibilities either the move continues higher or a correction takes place.
When markets are volatile, it is important to choose relatively safer assets where risk management is easier and where you can avoid excessive losses. In this case, I would choose silver because its price movements are generally more stable, and it responds well to market news, making it suitable for this strategy.
The strategy is based on a hedging method. Divide your capital into two equal parts. Keep one portion in cash and use the other portion on Binance. Buy a physical 1 kg silver bar at the current market price. At the same time, open a short position on Binance with an equivalent amount at the same price. This creates a hedged trading setup.
Since the market is currently volatile, silver will either move sharply upward or downward. If the price of silver drops, your short position will become profitable. Once you achieve around 4–5% profit on the short position, close that trade and continue holding the physical silver bar.
In this strategy, the short side should be your first priority. If silver rises instead, your physical silver bar will gain value while the short position will show a loss.
In that situation, do not sell the physical silver bar. Instead, continue holding both positions until the price eventually experiences a pullback.
At some point, if silver rises further and then later drops, the short position can move into profit. Once the short side becomes profitable, close it while continuing to hold the physical silver.
Since the market may recover after a correction, when the price returns to your break even level or desired target, you can sell the physical silver bar as well. In this way, you may be able to lock in profits from both sides of the market.
This hedging method is considered a relatively safer trading approach and is used by many investors and traders. If you follow these principles carefully, you may be able to achieve good results. The advantage is that the risk of a complete loss is lower because the physical silver remains in your possession.
even if the price falls, it can go upside back because metals always have a price appreciation..
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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