1. What is a short?
A short position seeks to profit when price falls: sell higher and buy back lower, retaining the difference.
2. Ways to short crypto
- Futures exchanges: Open a short through venues such as Binance or Bybit.
- Margin trading: Borrow coins, sell them and repurchase at a lower price.
- Inverse ETFs or tokens: Instruments designed to gain when the underlying price falls.
3. Short-selling risks
🚨 Cautions
• Potentially unlimited loss: Price can keep rising, whereas a long asset's price has a floor of zero.
• Short squeeze: A sharp rise can trigger a chain of forced short liquidations.
• Going against the trend: The source describes Bitcoin's long-term direction as upward.
• Funding: Holding a short can incur costs in some periods.
4. AI trading in both directions
The source describes NOONOO TRADING as using both longs and shorts: long in rising markets and short in falling markets, seeking returns in any market.