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Legitimately asking: Can you even short Bitcoin? At least safely. Shorts as a concept are designed around legally binding contracts. If you fail to pay out on
by Someone1234 9y ago
Legitimately asking: Can you even short Bitcoin? At least safely.
Shorts as a concept are designed around legally binding contracts. If you fail to pay out on a short you sell, they'll sue you and you'll be suspended in the markets. How would that work on something like Bitcoin?
- sethgecko 9y agoYes you can, without ever touching a bitcoin. CBOE offers cash settled bitcoin futures.
- maxerickson 9y agoCBOE futures launched Dec 10 last year though, so they have only recently been an option. I wonder how people trading those futures see the bitcoin market (my assumption is that many of them will be much more sophisticated than the typical "crypto" trader).
- YourCupOTea 9y agoYou can now with the futures XBT
- suls 9y agoTwo options off the top of my head: 1/ Use the CBOE or CME futures for this. Just need to signup with a broker and sell a contract. 2/ Borrow BTC frome a holder. Agree to pay some interest. Then sell that BTC.
- mrb 9y agoYou can short Bitcoin via the futures markets launched in December by CME and CBOE. https://www.fool.com/investing/2017/12/10/cme-bitcoin-futures-a-better-way-to-buy-or-short-b.aspx https://www.fool.com/investing/2017/12/10/cme-bitcoin-future...
- take4 9y agoYou can open a short futures position in /XBT (1 btc contract) or /BTC (5 btc contract), but that is obviously not safe, and the margin requirements to even enter are insanely large. And they don’t offer options, so there really is no way to limit your risk.
- donkeyd 9y agoI've shorted BTC a couple of times in an app (EU regulated) that allows CFD trading. Trading gets halted for a couple of seconds multiple times a minute when the market is very volatile though, so safely is a big word.