A stock is rallying while the rest of the market is relatively flat or declining. And with the recent launch of bitcoin futures on major exchanges, it has never been easier to short sell crypto. Bitcoin bulls have had a relatively good year so far after a disastrous 2022. getty Bitcoin bulls have had a good year so far. However, these are not the only exchanges that offer shorting. CFD is a derivative and hence a financial instrument that allows investors to trade and profit from the price movement of an underlying asset without having to buy or own it. The GameStop Saga Is Getting a Movie Starring Seth Rogen and bitcoin Why? Robinhood is one of the most popular online commission-free brokerages, and millions of people trade using its app every day. Leverage trading is no exception. In this article, I will be discussing the process of shorting cryptocurrencies on the popular trading platform, Robinhood. For example, the borrower deposits a 20% margin and the broker tops it up with 80% to provide the 100% required to purchase a given financial instrument. Both Bybit and FTX offer fantastic opportunities to short Bitcoin. So if you are looking for more trading freedom, then check out Webull for commission-free trading. I propose Kraken not because I get any commission from promoting them here but rather because I have an account with them and found it intuitive to short on. But shorting Bitcoin is an incredibly risky proposition. But if you're right and the price does go down, you can make a nice profit. It will show the maximum amount of crypto that you can borrow. In either case, you need to create a trading account with Robinhood and fund it with U.S. dollars. Thats roughly a $42,900 gain. A contract for difference (CFD) is an agreement between a seller and the buyer which expresses that the buyer must reimburse the seller the difference between the current price of an asset and its price at the contract time. Short selling involves selling stock you dont own, which means youll need to borrow it from Ultimately, it depends on your risk tolerance and your investment goals as well as the resources you have access to for short-selling.
