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Short

Shorting is a term used to describe a cryptocurrency trading strategy where the trader borrows an asset in hopes that they can profit from a decrease in price.

When the price of the asset falls, the trader buys it back at a lower price, repaying the loan and pocketing the difference. Shorting can be a risky proposition, as the trader is effectively betting against the market.

However, if done correctly, it can be a lucrative way to profit from market movements. Many traders use shorting as a way to hedge their portfolios, or to take advantage of market volatility.

Shorting is not for everyone, and it is important to understand the risks involved before entering into a short position. However, for those with the stomach for it, shorting can be a profitable way to trade the markets.



27 Dec 2023

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