Bybit: Virtual currency What is short selling on Bybit? Thorough explanation of how to do it and the benefits of trading


Bybit allows short selling and is considered the best virtual currency exchange market. We will explain how to purchase and how to do it. When trading cryptocurrencies, you make a profit when the price goes up, and you make a loss when the price goes down. However, you can avoid the risk by short selling. It is possible to earn more efficiently than general trading.

What is a short sale?

Short selling means placing a sell order regardless of whether you hold virtual currency or not. When placing a sell order, it is necessary to have a “virtual currency to sell”, but by depositing the margin first, you can place a sell order. Timing is very important as it will be repurchased when the price of the virtual currency falls. Selling short allows you to make a profit even if the price of an asset falls.

Advantages of short selling

The advantage of short selling is that you can make a profit. In general trading, you enter by selling or buying, and profits and losses are determined purely by the rise and fall of the currency’s value, but with short selling, you can make profits more efficiently than normal trading by making good use of the market. . For example, you can make a profit by placing a buy order when the market is rising and short selling when the market is falling. Select the timing and click to place your order. If you create an account in Japan or overseas, you can also use the smartphone app.

falling market

The advantage of short selling in a declining market is that you can make a profit. In a short sale, you sell the stock using margin as collateral, and the difference when you buy it back at a lower price is your profit. In other words, there is a good chance that you can make money by short selling virtual currencies during a down market. The liquidity is high, so we will make contracts by aiming at the time etc. on the chart. The timing and response to the sale are important to get started.

Leverage up to 100x

Bybit’s maximum leverage is 100x. High leverage means that you can trade even with less capital, making it easier to make profits. However, increasing leverage can also lead to losses. We also take into account the actual margin (commission). If you are not good at it, you may be forced to liquidate (loss-cut).

Zero cut system

The biggest advantage of short selling on Bybit is the zero cut system. A zero cut means that traders have no risk of going into debt. As long as you trade with Bybit, there is no risk of margin call.

Disadvantages of short selling

There are of course risks in short selling Bitcoin, whether it is spot trading or derivatives, and be careful as the following may occur. When buying and selling popular coins on exchanges, please refer to both of the information below. Currently, if the trading of crypto assets goes down depending on the brand, it can become extremely negative.

rising trend

The risk of short selling is that it is difficult to make a profit in an uptrend. Short selling is a method of making money by taking advantage of falling prices, so it is not suitable for uptrends with strong buying pressure. Therefore, it is better to wait until the flow calms down. It would be best to wait until the price settles down to the daily level.

loss cut risk

Bybit has a stop-loss cut. Naturally, you cannot continue holding more funds than the margin deposit. When forced liquidation is executed, the trade ends and losses are fixed. If you think that the flow is clearly different, it is important to cut your losses and restart. Lower your leverage or set your own stop-loss line in advance.

short sale timing

As a mechanism of short selling, it is a trading method that aims for profit by holding a new selling position without holding virtual currency and buying it back later. In other words, the point is whether you can hold a sell position in advance and buy back when the market goes down. Conversely, losses occur in rising markets.

Do you recommend selling short?

Bybit has a relatively rich set of functions compared to other virtual currency exchanges, and is said to be recommended for short selling, so I will introduce its features. Currently, the leverage is actually high, so if you put in a lot of quantity, you have a chance to make a lot of money.

Maximum leverage 100 times

A maximum leverage of 100x is a very high leverage. Leverage can be used to generate profits more efficiently. Leverage can be easily set on the trading screen, and can also be changed after placing an order.

No margin call

There is no extra proof, so there is no cost. Since we have adopted a zero cut system, no matter how big the loss becomes, the loss will not exceed the margin. It means that you can challenge short selling with confidence even for the first time. However, transaction fees are charged not only for short sales, but also for virtual currency transactions.

Open an account for free

Bybit completes the registration process in about 1 minute, so you can easily open it. You can also open an account for free as it does not cost money. It also comes with a bonus.


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