The operation also works in the opposite direction: it is called short selling or "shorter". Thus, traders can also benefit from the fall in prices. This is why leveraged transactions are especially interesting in copy trading in a period of bear market.
To do this, the trader concludes a forward transaction with the exchange. He sells assets that he does not really own, but that he borrows from the platform - hence the term "short sale". If the price falls, the trader then buys back the assets at a more advantageous price - the difference then constitutes the profit. All this may seem complicated at first, but an example will allow you to quickly understand the situation.
Trader A has a capital of 100,000 euros and the price of bitcoin is 100,000 euros. He sells short a BTC with a leverage of 10x and a bet of 100,000 euros. Thus, if the price then drops by 1%, it has (as in the example above) 10,000 euros in profit, because the BTC is bought back cheaper and then "repaid".
