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Author: Admin | 2025-04-28
These brokers with instant settlement (i.e., on the spot).A trader using margin trading to short BTC will typically borrow the assets from their broker, sell and buy them back at a later date when their value has (expectedly) fallen. They will thus make a profit by pocketing the difference between the sell and buy price of the borrowed coins.Margin trading is the simplest way to short Bitcoin. It represents the most straightforward implementation of the short-selling concept compared to the other methods available.You can access spot margin trading in any of the following trustworthy and credible crypto trading platforms:Binance (Global);FTX (Global);KuCoin;Kraken.2. Crypto options tradingOptions are non-obligatory contracts between transacting parties allowing for settlement within a specified date range on a predetermined price (also called the strike price.) Two sets of options exist from which an investor can choose depending on their trading strategies:Call options – this contract gives you the right to buy Bitcoin at the strike price, and they typically gain in value as the price of Bitcoin rises. These options are used in bull market conditions;Put options – on the other hand, the put option gives the holder the right to sell Bitcoin at the strike price, which is ideally lower than the current. The value of this contract rises as the price of BTC falls and is ideally the appropriate contract to buy if you are looking to short Bitcoin.They are called ‘options’ because the contract holder is not obligated to settle the contract at or before the strike price.Leading crypto exchange platforms that offer Bitcoin options trading include:Binance (Global);Deribit;FTX.US.3. Crypto futures tradingThe Bitcoin futures market allows counterparties to get into settlement contracts in which either party will buy or sell the asset at a predetermined date and for a specific price. The parties have an obligation to settle the contract according to the terms agreed upon.A trader looking to short Bitcoin will ideally take the sell side of the futures contract and agree to sell BTC to the buyer at a certain price. If they anticipate the price of Bitcoin to fall below that set level, they will buy the asset at the market on the settlement date and time and sell it at a higher price. If they are wrong, they will be forced to buy BTC at the market price, which is higher than the settlement price, theory making a loss.On the flip side, the trader could also opt to take the buyer role in the contract if they believe the price of BTC will rise above the settlement price. If that’s the case, they will be obligated to buy the asset at a discount, but if they are wrong, they will do the same at a premium.The following major crypto trading platforms will allow you to trade Bitcoin Futures:Binance (Global);FTX (US & Global);KuCoin;Kraken.4. Inverse Bitcoin Exchange-Traded Products (ETP)As the name suggests, inverse Bitcoin ETPs are specialized instruments that track the price of BTC with a twist. As the value of the underlying asset
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