Bitfinex total long & short liquidations (timeframe) Left Y: BTC volume liquidated 0 pos. 0 pos. 7 pos. 7 pos. Longs Shorts Longs Shorts 0 5 10 Bitmex long & short liquidations past 14d. Ticker Trading Ideas Educational Ideas Scripts People Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Dark color theme Sign Out Sign in Upgrade Upgrade now day Free Trial Start free trial Upgrade plan Pay nothing extra Upgrade early. The Difference Between Long and Short Trades.
Btc margin trading long vs. shortsBitfinex BTC Margin traders - Long vs Shorts — Indicator by UnknownUnicorn — TradingView
To get straight to the point, Coinbase is your best option given its size, reputation, and security. Moving on to fees, Bitcoin exchanges charge a base fee in the form of a spread—meaning that there is a discrepancy between the bid the price you buy at and the ask price the price you sell at. For example, with a spread of 50 basis points 0. Among the several US-based exchanges, expect to pay a premium for Coinbase as their base fee is 50 basis points—25 basis points more than Gemini and 30 more than itBit.
Pretty cheap, right? Yes, but of course, base fees are only a small portion of the fees you may be charged. Additional fees are charged on the basis of liquidity maker vs taker , position size the larger the position, the smaller the fees , and day gross trading volume.
Taking on a short position is the complicated part. According to DC Forecasts , the most direct way to take a short position on Bitcoin would be to open a margin account and sell Bitcoins on margin. However, as you would probably expect, such a trade has its caveats. The reality is, shorting on margin is becoming harder to come by for US-based, non-institutional investors. A little over a month ago August 11th, , popular international exchange, Bitfinex, announced the discontinuation of several of its services to US-based customers citing the high costs of legal and regulatory hoops to jump through.
Yet, these brokers all have one thing in common, they are based internationally, and therefore the costs of serving US customers has outweighed the benefit. On the other hand, Kraken, a Bitcoin exchange also based in San Francisco, offers margin trading for the non-institutional investor i. In addition, margin financing may not exceed a day maximum financing term per US restrictions. Essentially, this means that you can only hold your short position for 28 days until you are forced to close out your position regardless of unrealized gains or losses.
If you are looking for other means to short Bitcoin such as futures, options, ETFs, or taking on a potential cross-hedge position, the complications increase substantially, as does the risk. The simple case is that reliable forms of these derivatives do not exist, yet. In some cases, such derivatives are not available to US investors. The aforementioned Bitcoin exchange BitMEX would be your best option for Bitcoin-related derivatives if you live outside of the United States or are willing to go through the trouble of setting up a VPN.
All in all, your best bet on shorting Bitcoin would be to open a margin account with Kraken and sell Bitcoin. In assuming the reader is familiar with the concepts of margin and leverage, such a process is simple and logical.
With both long and short trades, profits and losses will be realised once the position is closed. You can also use leverage to get exposure to a much larger position than with a standard trade for both long and short , if you are confident about the direction of the market.
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