How does 'going short' work in the context of cryptocurrency trading?

3 answers

• LovcourMar 01, 2021 · 5 years ago
  When you 'go short' in cryptocurrency trading, you are essentially betting that the price of a particular cryptocurrency will decrease. This is done by borrowing the cryptocurrency from a broker or exchange, selling it at the current market price, and then buying it back at a lower price to return it to the lender. The difference between the selling price and the buying price is your profit. It's important to note that 'going short' is a more advanced trading strategy and involves higher risks compared to 'going long'.
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• Rajnish KrApr 24, 2023 · 3 years ago
  Short selling in cryptocurrency trading is like selling high and buying low. You borrow a cryptocurrency from someone, sell it at the current market price, and then buy it back at a lower price to return it to the lender. The profit is the difference between the selling price and the buying price. It's a way to profit from a falling market. However, it's important to be cautious as the market can be volatile and prices can change rapidly.
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• Natchayaphorn JanthimaJul 13, 2020 · 6 years ago
  In the context of cryptocurrency trading, 'going short' refers to the practice of selling a cryptocurrency that you do not currently own with the expectation that its price will decrease. This is typically done by borrowing the cryptocurrency from a broker or exchange and selling it on the market. If the price does indeed decrease, you can buy back the cryptocurrency at a lower price and return it to the lender, pocketing the difference as profit. It's important to note that 'going short' carries higher risks compared to 'going long' as the potential losses are unlimited if the price of the cryptocurrency increases instead.
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