What Is Shorting in the Financial Markets?

What Is Shorting in the Financial Markets?

There are countless ways to generate profits in the financial markets. Some traders will use technical analysis, while others will invest in companies and projects using fundamental analysis. As such, you, as a trader or investor, also have many different options to create a profitable trading strategy. However, what if the market is going through a prolonged bear market, where prices are continually declining? What can traders do then to maintain a source of income from trading? Shorting the market allows traders to profit off price declines. Entering a short position can also be an excellent way to manage risk and hedge existing holdings against price risk. In this article, we’ll explain what shorting means, how to short Bitcoin on Binance, and learn about the risks of shorting.