Do Bitcoin exchanges allow market makers to short sell?

frankh13

newbie

Activity: 35

Merit: 0

Quote from: adhitthana on August 14, 2014, 06:43:10 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

May be it's using only on fork exchanges.

SomethingElse

full member

Activity: 210

Merit: 100

Looking for the next big thing

I am sure there are all kinds of shady things happening on exchanges. Bots, short sells, fake volume and more.

bitcoinbeliever

newbie

Activity: 54

Merit: 0

Quote from: Fray on August 14, 2014, 07:01:43 PM

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.

BurtW

legendary

Activity: 2646

Merit: 1137

All paid signature campaigns should be banned.

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.

odolvlobo

legendary

Activity: 4466

Merit: 3391

Bitfinex is the only exchange that I know of that allows short-selling.

Fray

full member

Activity: 209

Merit: 100

Quote from: bitcoinbeliever on August 14, 2014, 06:57:20 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.

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.

bitcoinbeliever

newbie

Activity: 54

Merit: 0

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.

adhitthana

legendary

Activity: 1190

Merit: 1000

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

Topic: Do Bitcoin exchanges allow market makers to short sell? (Read 1053 times)