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Short positions: * Have unlimited downside * Are more difficult to get your hands on It's not really reasonable to expect everyone bearish on crypto to also
by phailhaus 4y ago
Short positions:
* Have unlimited downside
* Are more difficult to get your hands on
It's not really reasonable to expect everyone bearish on crypto to also take uncapped risks.
- sumy23 4y agoYou can buy short options that have capped downside.
- phailhaus 4y agoGood point
- peter422 4y agoSo if you think crypto is mostly a scam the solution is to get into options trading? Staying away and warning your friends/family about the scammy nature of many coins is a perfectly reasonable response.
- phailhaus 4y agoNo, OP is saying that you can't make fun of it unless you put your money where your mouth is. Obviously, most people disagree.
- SilasX 4y agoNo. What you’ve described would apply to short selling but not all short positions. If you buy a put on Ethereum (the right to sell at a specific price by a certain date), then you are short Ethereum because you benefit from price declines. Your losses are limited to what you paid for the put. You just need to have the cash for it and you can do so on LedgerX/FTX.