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Title: Do Bitcoin exchanges allow market makers to short sell? Post by: adhitthana on August 14, 2014, 11:43:10 PM If they do then..do they have borrowing arrangements set up, as happens with say, shares? are they using clients BTC?
I notice that on page 43 of the prospectus for http://www.digitalbtc.com/ it says. Quote Digital CC trades or proposes to trade digital currencies by using specialised strategies which include arbitrage, buying long positions, selling short positions, futures contracts and market making at exchanges (Bitcoin exchanges are described below). http://www.digitalbtc.com/wp-content/uploads/sites/2/2014/03/Prospectus.pdf Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: bitcoinbeliever on August 14, 2014, 11:57:20 PM It's simple folks.
If you're concerned about naked short-selling, and short-selling in general causing price declines, do yourself and the rest of the community a favor. TRANSFER your BTC to a wallet where only YOU have the keys. Then they can't be lent to anybody. Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: Fray on August 15, 2014, 12:01:43 AM It's simple folks. Short selling does help reduce the amount of large price gains that are not supported by the fundamentals (and will eventually lead to a crash). If the prices does not rise too fast and does not crash then more people will want to start using bitcoin over time that will lead to greater long term prices. If you're concerned about naked short-selling, and short-selling in general causing price declines, do yourself and the rest of the community a favor. TRANSFER your BTC to a wallet where only YOU have the keys. Then they can't be lent to anybody. Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: odolvlobo on August 15, 2014, 12:03:13 AM Bitfinex is the only exchange that I know of that allows short-selling.
Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: BurtW on August 15, 2014, 12:04:49 AM https://www.bitfinex.com/
Allows you to borrow BTC from other users and sell BTC short. It also allows you to borrow USD from other users and use them to buy BTC. Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: bitcoinbeliever on August 15, 2014, 12:08:15 AM Short selling does help reduce the amount of large price gains that are not supported by the fundamentals (and will eventually lead to a crash). If the prices does not rise too fast and does not crash then more people will want to start using bitcoin over time that will lead to greater long term prices. Any time you don't have the keys, you are trusting those who do. I can't believe I have to remind anyone here about that. Access to depositors' coins give market manipulators LEVERAGE. Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: SomethingElse on August 15, 2014, 02:55:08 AM I am sure there are all kinds of shady things happening on exchanges. Bots, short sells, fake volume and more.
Title: Re: Do Bitcoin exchanges allow market makers to short sell? Post by: frankh13 on August 15, 2014, 06:25:59 AM If they do then..do they have borrowing arrangements set up, as happens with say, shares? are they using clients BTC? I notice that on page 43 of the prospectus for http://www.digitalbtc.com/ it says. Quote Digital CC trades or proposes to trade digital currencies by using specialised strategies which include arbitrage, buying long positions, selling short positions, futures contracts and market making at exchanges (Bitcoin exchanges are described below). http://www.digitalbtc.com/wp-content/uploads/sites/2/2014/03/Prospectus.pdf May be it's using only on fork exchanges. |