Step-By-Step Guide for Short Selling on Binance Exchange
I will walk you through the details of opening a Margin Trading account on Binance and perform short-selling trades (and more).
Short-Selling is one of the essential strategies in trading. If you understand the concepts behind short-selling, utilizing it in any financial trading or investment is not complicated.
In this story, I will explain the step-by-step process of short-selling in the Binance crypto exchange. However, before reviewing this process as an introduction, let’s see what short selling is?
There are, in general, two main trading strategies:
Long:
- Buy at a lower price
- Sell at a higher price
Short:
- Sell at a higher price
- Buy at a lower price
In other words, in Long positions, you “buy low” and “sell high,” and your gain is the price difference between the high and low price of the asset.
The “Short” scenario is confusing, mainly because most people are not mentally used to this concept.
In Short positions, you basically borrow money from others (e.g., exchanges) to buy an asset. Then, you (or the lender party) sell that asset instantly at a higher price…
