Can people short sell Bitcoin like they short sell stocks in the stock market?

[ijphlrnxewho]

His majesty the King Cuong Truong wants to know:

"Can people short sell Bitcoin like they short sell stocks in the stock market?"

[1714876739]

1714876739

[Lethn]

I don't think there's anything stopping you, but I haven't seen anyone create the software for it yet.

Edit: What you could do is set up a betting pool to and bet whether Bitcoin falls below a certain price, but I've forgotten the websites where you can do that.

[Stephen Gornick]

"Can people short sell Bitcoin like they short sell stocks in the stock market?"

One method to short sell is to personally borrow bitcoins, sell them on the market, and then buy them back later when the loan repayment(s) is(are) due.   Of course, that's a naked short and nobody will lend you any significant amount of bitcoins without collateral or other assurances the lender may require.

Other methods include selling the BTC/USD futures contracts at ICBIT.se.

Currently they have a March 15, 2013 contract expiration, April 15th, 2013, June 15, 2013, and a September 15th, 2013.   You can get somewhere around 10X leverage this way, but be careful at those higher levels as volatility can easily put you in a position where your margin is insufficient and you et a margin call (and see your positions liquidated by force).
 - http://www.ICBIt.se

Additionally you can buy PUT contracts (or write CALL contracts) on MPOE/MPEX.

Coming soon are CoinSetter, Kraken and more.

[ijphlrnxewho]

What do you mean by:

Coming soon are CoinSetter, Kraken and more.

Are they future companies that function similar to ICBIT.se that you mentioned earlier in your post?

[flower1024]

you may try bitfinex.com which offer margin trading and short positions...
i dont say anything about how honest they are (i simple dont know): but i use them myself sometimes

[bozak]

In general, I think the answer at this point in time is no.  There may be some very small exchanges that allow short selling, but none of the larger exchanges currently offer it.  Bitcoinica previously offered shorting, but they either got hacked or made off with all the bitcoins (unclear which one happened). 

[flower1024]

bitfinex is like bitcoinica which means they are using mtgox... so there is no problem with a "small exchange".
just try

[Keldel]

Why does bitcoin need to be short-sellable? What is the benefit if people can sell what they don't have?

[flower1024]

Why does bitcoin need to be short-sellable? What is the benefit if people can sell what they don't have?

to make a profit?
thats what speculation is all about...

[nova]

I think the arbitrage between selling at different exchanges is kind of a style of short-selling for bitcoin.  Is ripple an easy way to transfer fiat/fiat credit between different exchanges?

[Bullbear]

I suppose if someone were generous/foolish enough to lend the Bitcoin they own I suppose that you could, but I doubt anyone will fall into that trap, just too much insecurity.

[ijphlrnxewho]

I think the only way it can be possible is when bankers step in and open their own Bitcoin trading company.

[JohnCoins]

that has to happen soon.

[Stephen Gornick]

Are they future companies that function similar to ICBIT.se that you mentioned earlier in your post?

Here, now you can know about as much of them as I do:

Going by the name of "Kraken," it will be the first site to offer leveraged trading since the beleaguered Bitcoinica went offline last year.

- http://www.thebitcointrader.com/2013/01/finally-bitcoinica-replacement.html

and
 - http://twitter.com/CoinSetter





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