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How do crypto exchanges handle short selling?

avatarjenniferthodgesyzlDec 16, 2021 · 3 years ago1 answers

Can you explain how cryptocurrency exchanges handle short selling? What are the mechanisms and processes involved?

How do crypto exchanges handle short selling?

1 answers

  • avatarDec 16, 2021 · 3 years ago
    At BYDFi, short selling is handled through our margin trading platform. Traders can borrow cryptocurrencies from other users on the platform and sell them on the market. We provide a secure and transparent lending system, where lenders can set their own interest rates and collateral requirements. Traders can use leverage to amplify their short positions and maximize their potential profits. Our margin trading features include real-time margin monitoring, automatic position liquidation, and risk management tools. We strive to ensure a fair and efficient short selling process for our users.