How to short trade on a cryptocurrency exchange 🚀

Short position allows you to profit from a price decline. You sell something you don't have. Then you bail-out cheaper. Simple, right? Let's see how it works in different markets 🔥

What is short on spot? 📉

On the spot market, everything is a bit more complicated. You borrow cryptocurrency. Sell it. Wait for the drop. Buy it back. Return the debt. Your profit.

Example: ETH is now $5,300. It seems like it will fall soon. You take 1 ETH, sell it. The price drops to $5,100. You bail-out, return it. $200 in your pocket (, minus commissions ) 💰

How to open a short on spot with margin trading

1. Top up the margin wallet — transfer from spot
2. Select margin type — "Cross" or "Isolated" (the second one seems safer)
3. Borrow an asset — find the "Sell" tab, switch to "Borrow"
4. Specify the parameters:
   • Selling price
   • How many coins to borrow
   • Click "Margin Sale"

And voilà! USDT is in your account.

Closing a Short Position on Spot 🌕

Price has dropped? Locking in profits:

1. We press "Buy", switch to "Redeem"
2. Specify the new price
3. Specify the quantity
4. Press "Buy ETH"

The system will do everything by itself. It's not entirely clear why this is called "bail-out", but it works.

Short on the futures market 📊

Simpler futures — no loans:

1. Choose a contract
2. Determine the margin and leverage
3. Select order type
4. Click "Open Short"

Close? Click "Close". Logical, right?

Trading via Terminals 💻

The terminals are just beautiful:

• Connect the account
• Click on Bid in the order book — and the short is open
• In the spot market, select "Margin" and you're done.

Important to remember 🧠

Shorting is riskier than regular trading. If the market goes up... it won't be very pleasant. Right now ( September 2025 the market is kind of crazy. It's better to set stop-losses.

Many experienced traders advise beginners to trade in the usual way first. It seems to make sense. But who am I to advise? 🤓