How short positions work on the #cryptomarket

One of the main differences between the futures market and the spot market is the presence of short positions. That is, you can make money if the asset falls.

☑️ For example, you open a short trade on Bitcoin when it was worth $70,000. To do this, you borrow 1 $BTC from the exchange and sell it for $70,000.

You are left with $70,000 and the obligation to give 1 $BTC to the exchange. In other words, you have $0 now

☑️ Then Bitcoin drops to $68,400 and you buy back 1 $BTC at this price. Now you owe 0 BTC to the exchange and you have a difference of $70,000 - $68,400 = $1,600

#Binance200M #BTC #bitcoin #IOprediction