Shorting and margin selling: I actually tried to google a few months ago, as I saw the downward trend in coin prices, I was looking to short coins. Well, now its a reality, atleast for Bitcoin. Coinsetter, a reputable New York based Bitcoin exchange, has added margin and shorting, as well as the ability to minimize capital held on a Bitcoin exchange to businesses and market makers. This move is a response to security breaches that have weakened the Bitcoin market. Select customers will now have the option to buy and sell Bitcoin on margin, settling their balances after trades have been executed. This move will minimize the capital held on a Bitcoin exchange and add an extra layer of loss protection for clients. Many Wall Street exchanges already use this method of exchange.For those of you that dont know what shorting a market is, in simplistic terms, you are “betting” on the fact that the price of a coin/commodity will go down, and when it does , you will profit. Here is the long definition:
Short selling is the act of selling a stock that an investor does not own in anticipation that the stock’s price will fall. The process occurs in the opposite order of buying a stock — a short seller first sells a stock and later buys it back. Short selling is typically used as a short-term strategy to profit from an expected drop in an individual stock’s price or the entire market
Boy, I could have use this , this year. LOL.