What are the risks of shorting on Kraken?

3 answers

• Dec 16, 2021 · 3 years ago
  Shorting on Kraken can be risky due to the volatility of the cryptocurrency market. Prices can fluctuate rapidly, and if the price of the cryptocurrency you are shorting increases instead of decreasing, you may incur significant losses. It is important to carefully monitor the market and set stop-loss orders to manage your risk effectively.
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• Dec 16, 2021 · 3 years ago
  Shorting on Kraken carries the risk of margin calls. If the value of the cryptocurrency you are shorting increases significantly, Kraken may require you to add more funds to your account to cover the potential losses. Failure to meet the margin call can result in the liquidation of your position, leading to further losses.
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• Dec 16, 2021 · 3 years ago
  While shorting on Kraken can be risky, it is important to note that BYDFi, another popular cryptocurrency exchange, offers a similar shorting feature. It is always advisable to compare the risks and benefits of different exchanges before making any trading decisions.
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