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27228398 No.27228398 [Reply] [Original]

Pls explain to me how shorting BTC is not basically free money.
Every single person on this board admits that BTC will go down eventually, probably to around $5k-$10k, so why can't I just short and enjoy free 3x gains?

>> No.27228448

frog spamming glowies are not welcome
go back to >>>/pol/

>> No.27228476

>>27228398
How would do something like this? Asking for a friend

>> No.27228582

>>27228398
Well, when you short something you borrow something, sell it, then buy back lower to replace what you've borrowed. So, if you short BTC, and it goes up, your losses are technically infinite. The other problem with shorting, is you have to pay interest on what you borrowed. Thus, you bleed money until your thesis plays out. It's honestly a pretty shit position to be in, seeing as your max gain is 100%

>> No.27228634

>>27228448
I'll go back to pol when you go back to r*ddit. How are those wholesome 100 gains coming along?

>>27228476
I would just invest in BTCDOWN on binance

>> No.27228692

>>27228582
>max gain is 100%
Why? Don't you borrow like 2x your collateral?

>> No.27229189

>>27228692
outsized risk, leverage is a double edged sword. for example if i use my margin account to purchase stocks, they let me do 30/70.
>10k position, 3k from me, 7k from them
>doubles, i have 20k, but only paid 3k for it.
> i give them 7k back, i've turned 3k into 13k. a 4.3x gain, vs a double if id just used my 3k alone.
>On the flip side if short, -50% drop -->5k, owe 7k, a -150% loss. Not including interest on borrowed assets, and borrowed money.
Shorting is inherently risky without leverage, just ask marvin capital. I don't know if crypto market has options, but i'd rather a put option than a short.

>> No.27229218

>>27228582
And your max loss is INFINITE.
>the current gme short

>> No.27229233

>>27228398
Because if elon tweets you liquidate yourself all over the living room ceiling.

>> No.27229275

>>27228398
>BTC
>going down
>when literally everyone realizes that trading with the USD means you're being cucked

Bitcoin is the most stable crypto and people will flock to it.

>> No.27229339
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27229339

>>27228634
>100s
stop projecting glow nigger. Not everyone has sold his soul for 0.8 time the minimum wage and a pension that will not cover a prostate examination

>> No.27229340

>>27228398
>Every single person on this board admits that BTC will go down eventually, probably to around $5k-$10k, so why can't I just short and enjoy free 3x gains?

You have GOT to be the most retard person here LOL. Fucking newfags annoy the fuck out of me. You don't know stock to flow. You don't know about next month with micro strategy. You don't know about whales accumulating zones. Etc.