How does short selling work for cryptocurrencies on Fidelity?

3 answers

• Jan 12, 2022 · 3 years ago
  Short selling cryptocurrencies on Fidelity involves borrowing a certain amount of a cryptocurrency from Fidelity and selling it on the market. The goal is to buy it back at a lower price in the future, return it to Fidelity, and pocket the difference as profit. It's similar to short selling stocks, but instead of shares, you're dealing with cryptocurrencies. This strategy allows traders to profit from a decline in cryptocurrency prices.
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• Jan 12, 2022 · 3 years ago
  When short selling cryptocurrencies on Fidelity, you need to have a margin account and meet certain requirements set by Fidelity. It's important to note that short selling is a high-risk strategy and should only be undertaken by experienced traders who understand the risks involved. It's also worth mentioning that short selling can have a significant impact on the market, as it can contribute to further price declines if many traders are shorting a particular cryptocurrency.
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• Jan 12, 2022 · 3 years ago
  Short selling cryptocurrencies on Fidelity is not available on BYDFi. However, Fidelity offers this feature to its customers, allowing them to take advantage of downward price movements in cryptocurrencies. It's important to understand the risks involved and to have a solid understanding of the market before engaging in short selling. If you're interested in short selling cryptocurrencies, Fidelity can provide you with the necessary tools and resources to get started.
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