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Short Selling

Sorry if there is already a thread on this, any info on short selling crypto especially btc, is it possible through certain exchanges?


  • CoinGuyCoinGuy Administrator
    @LeeInChina not aware of any exchange offering this. Most people usually play around with varying price between exchanges. @BruceWayne you aware of any short selling exchanges?
  • BruceWayneBruceWayne Member Plus
    There are quite a few exchanges which allow margin trading (including short selling).

    Kraken allows margin trading on USD/CAD/EUR BTC pairings. Bitfinex also has USD margin trading on most major coins. BitMEX has leveraged trading but you can only fund your account with BTC so I don't know why anyone would short on there since at best your just maintaining value.

    Margin trading is incredibly risky. You can lose a lot of money very fast if the market turns in the wrong direction and you will slowly bleed money holding on to a losing position for an extended period of time. And I wouldn't recommend shorting here because it's not much different than going long November-December 2017; there's a lot of people pushing the price but it's probably sheer idiot momentum keeping it going and there's going to be a point when it finally turns and a lot of people are forced to close their positions.

    If you're a new trader (particularly to BTC) then there's no way I can recommend this type of trading. It's the old saying in investing; only put in what you're full prepared to lose completely
  • CoinGuyCoinGuy Administrator
    Thanks @BruceWayne - didn’t know Kraken had that. Haven’t used them for a year or two. As always thanks for the insights :)
  • BruceWayneBruceWayne Member Plus
    @CoinGuy - They've had margin trading for awhile now. I didn't realize you could margin trade BTC/CAD until recently. I made Kraken my main fiat exchange last year. There are more exchanges which can do margin trading but these are the ones I have the most experience with. Hard to believe we're so old school I actually remember when each of them first started trading (I was even trading on BitMEX when they were still beta testing).....
  • Thanks for your response, however Im not sure why the margin trading comparison, to my understanding margin is leverage eg: 10:1 , shorting is 1:1, so why the comparison?
  • BruceWayneBruceWayne Member Plus
    @LeeInChina Short selling is margin trading. Unless you're flat out selling BTC you already own for fiat you are borrowing an asset (in this case BTC), posting collateral (either BTC or fiat) and you are paying funding fees depending on how long you hold that position. You can do 1:1 leverage but some exchanges allow you to go anywhere from 2:1 to 100:1 on either long or short positions.
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