Short, or a short position, is a strategy for making money in a falling cryptocurrency market. It is a speculative operation in which a trader borrows a digital asset, sells it at the current price, and then aims to buy out cheaper to make a profit.

The short mechanism on Gate works as follows: the user borrows cryptocurrency from other participants on the platform for a certain percentage. Then he sells it, anticipating a drop in the price. For example, you can borrow 2 BTC at a price of $40000 per coin, sell them, and if the price drops to $38000, buy them back. In this case, after deducting fees, the potential profit will be around $4000.

However, it is important to understand that Short is associated with high risk. The time for using borrowed funds is limited, which does not allow for waiting a long time for the right moment to close the position. If the cryptocurrency price does not decrease or, worse, increases, the trader will have to close the deal at a loss, paying the difference out of their own funds.

Before opening a short position on Gate, it is essential to thoroughly analyze the market and consider all possible risks. Short can be an effective tool for experienced traders, but beginners should approach it with particular caution.