Feeling Bearish? Shorting is now available to limited verified individual accounts.
Accessing shorting on sFOX is seamless. Simply sign in to your account and enable shorting via the UI prompt. If you are not prompted, message our team at support@sfox.com and inquire if your account is eligible for shorting.
What is Shorting?
Shorting, or short selling, is a trading strategy where an investor seeks to make a profit when the value of an asset, such as Bitcoin or Ethereum, declines in price.
How shorting works
You borrow 1 BTC from sFOX and sell it at $22,000.
You now have a 1 BTC short position open. Account balance USD: $22,000, BTC: -1.00
The price of Bitcoin falls to $20,000.
You close your short position by purchasing 1 BTC. Account balance USD: $2,000, BTC: 0
Your profit, in this case, would be $2,000 (minus the interest payments and fees)
You can view the variable interest rates by visiting: https://trade.sfox.com/portfolio/spot-borrow
Shorting on sFOX allows you to
Capture gains when prices decline: Shorting enables you to profit as prices decline.
Hedge risk: Entering a short position can be an excellent way to manage risk and hedge existing holdings against price risk.
Short in full security and compliance: sFOX is a regulated and compliant platform that prioritizes client safety – all positions are over-collateralized to keep all users safe.
Short with a seamless UX: Shorting on sFOX is uniquely automated and frictionless. Rather than requiring discrete actions to request loans, receive the loan, transfer the funds, trade, etc. The entire process is abstracted into net balances.
Assets Available for Shorting
Assets that can be shorted will be visible in the UI in the currency pair selector. Currently this includes:
BTC
ETH
BCH
LTC
DOGE
SOL
LINK
sFOX currently only accepts USD as collateral for shorting.