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/biz/ - Business & Finance

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4331429 No.4331429 [Reply] [Original]

Shorting and Selling mean the same thing

>> No.4331460

>>4331429
Fuck off.

>> No.4331496

>>4331429
Fucking retard here, but how do you actually short crypto? Isn't it in essence just waiting to buy the dip? Serious question.

>> No.4331587

>>4331496
You short it by going long

>> No.4331588

>>4331429
kind of yes

>> No.4331630

>>4331429
Essentially yes

>> No.4331661

>>4331496
Eh, close enough.

>> No.4331674

>>4331496
>take margin
>buy coin
>sell it before it drops
>buy it back when its low
>pay what you borrowed, keep the extra

>> No.4331687

>>4331429
You have a contract with a third party when shorting.
Just selling and buying later have no strings attached.

>> No.4331730

>>4331429
>What is leverage

>> No.4331926

>>4331674
>buy it back when its low
that was kind of my point, why not just start right here, without owing any money to anyone, if you're trying to short then you hope it's going to dip to buy back in at some point right? So, why not just do that?

>> No.4332425

>>4331926
Imagine I want to short ETH. I don't want to own any eth, but I know it's going to fall.

I borrow money to short, and receive the profits. At no point did I need to own any eth myself to make the money, and now I'm not left off with a bag of eth too.

>> No.4332464

>>4331496
You have to buy high sell no. But seriously you short on Poloniex. You borrow coins and buy them back in at a lower price.

>> No.4332489

>>4332464
Only correct explanation.

>> No.4332501

>>4331429
Discussing this concept always exposes newfags.
No, simply selling a top isn't short selling. At all. Fundamentally different.

>> No.4332536

>>4332489
This is /biz/ don't expect anyone to know anything.

>> No.4332549

>>4331429
Nope.

Shorting can incur unlimited losses, while selling just makes you miss out gains.

One puts you in debt the other makes you a dumbass.

>> No.4332558

>>4331926
because if you short you make money on the loss. with the short you don't have to think that the price will go back up after the dip. borrow xyz, sell at 10, buy at 4 then give xyz back to the original owner. you made 6 without anything going up. after it hits 4 it could stay there forever or go down even more. shorting =/= buying the dip. if you are very pessimistic about a coin then why buy the dip if you think it's going to go to 0?

>> No.4332590

>>4332549
it can theoretically, but shorting is often done in order to cover a long position to hedge risk. it's less applicable in the coin markets since there aren't solid exchanges which let you trade derivatives or futures, but people rarely do people ONLY short a position.

>> No.4332624

>>4332590
Some people hedge sure (retards). The best shorts are the ones during a big run up. Short the top, close at bounce. Ezpz money.