BitFlyer contract shorting tutorial

To short a cryptocurrency on BitFlyer, traders can sell futures contracts, speculating on a price decline to profit from the underlying asset's devaluation.

Nov 14, 2024 at 07:29 pm

BitFlyer Contract Shorting Tutorial: A Comprehensive Guide

What is Contract Shorting?

Contract shorting is a trading strategy that speculates on the decrease in the price of a cryptocurrency. By selling a futures contract, traders can profit from a decline in the underlying asset's value. This tutorial provides a step-by-step guide to contract shorting on BitFlyer, one of the leading cryptocurrency exchanges.

Step 1: Open a BitFlyer Account

Visit the BitFlyer website and create a new account.
Complete the identity verification process to enable trading.
Fund your account with Japanese Yen (JPY) or cryptocurrencies.

Step 2: Choose a Trading Pair

Select the trading pair you wish to short, such as BTC/JPY or ETH/JPY.
Futures contracts on BitFlyer are settled in JPY, so you will need to convert your funds accordingly.

Step 3: Place a Short Order

Navigate to the "Futures" section of the BitFlyer platform.
Click on the "Short" tab and enter the following information:
- Quantity: The number of contracts you wish to sell.
- Order Type: Choose either "Market Order" for immediate execution or "Limit Order" to specify a desired price.
- Price (Limit Order only): Enter the price at which you want to sell the contracts.
Review your order details and click "Place Order."

Step 4: Risk Management

Stop-Loss Orders: Set stop-loss orders to limit potential losses if the market moves against your position.
Profit Targets: Determine your profit targets and exit your position accordingly.
Position Size: Trade with a position size that aligns with your risk tolerance and account balance.

Step 5: Monitor Your Position

Once your order is placed, monitor its performance in real-time.
Track the price of the underlying cryptocurrency and make adjustments to your position as needed.
Close your position when you reach your profit target or if the market conditions change.

Additional Tips for Contract Shorting

Understand the risks: Contract shorting can be a risky strategy, especially in volatile markets.
Research the market: Conduct thorough research to understand the underlying cryptocurrency's price dynamics and market trends.
Use appropriate leverage: Leverage can amplify both profits and losses, so use it cautiously.
Manage your emotions: Avoid making impulsive decisions based on fear or greed.
Learn from experienced traders: Follow reputable traders on social media or seek guidance from a financial advisor.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

TRIBE

$0.5376

20.74%

Trade Now
CAIR

$0.5602

17.69%

Trade Now
QI

$0.0123

14.33%

Trade Now
STPT

$0.0665

13.11%

Trade Now
CUDOS

$0.0108

12.48%

Trade Now
VVV

$5.8527

11.32%

Trade Now

Latest Crypto News

Bitcoin (BTC) Price Today - February 6: BTC Trades Range-Bound Below $100,000, ETH Crosses $2,800
2025-02-06 17:06:03
Ethereum Price Recovery Faces Hurdle At Key Barriers
2025-02-06 17:06:03
Top Crypto Coins Like BNB (BNB) and Remittix (RTX) Are Influencing the Direction of Digital Finance. But How Far Can They Rise?
2025-02-06 17:06:03
Cardano (ADA) Price Prediction: ADA Could Be Looking at Significant Gains, But Whales Activity Flashes Bearish Signals
2025-02-06 17:06:03
Bitcoin (BTC) Approaches a Potential Uptrend, Altcoin Market Shows a Sign of Recovery with ETH and XMR Spiking Over 5% in the Past Day
2025-02-06 17:06:03
Ethereum: Post-Liquidation Analysis of Contract Open Interest, ETF Fund Inflows, On-Chain Data, and Token Inflation
2025-02-06 17:06:03

Related knowledge

What are the impacts of different contract leverage multiples?

Dec 16,2024 at 12:46pm

Impacts of Different Contract Leverage MultiplesLeverage, a tool leveraged in the financial realm, amplifies trading activities and enhances potential returns while simultaneously magnifying risks. Understanding the implications of varying leverage multiples is paramount for savvy traders. This article delves into the impacts of different contract lever...

Which is more suitable for novices, contract trading or margin trading on Huobi.com?

Dec 16,2024 at 12:44pm

Which is More Suitable for Novices: Contract Trading or Margin Trading on Huobi.com?As a novice trader venturing into the world of cryptocurrency trading, the choice between contract trading and margin trading on Huobi.com can be a daunting one. Both instruments offer unique advantages and drawbacks, making it crucial to understand their key differences...

What does the leverage ratio of contract trading mean?

Dec 16,2024 at 12:43pm

What does the leverage ratio of contract trading mean?IntroductionLeverage ratio is a key concept in contract trading, allowing traders to gain exposure to a larger position than their initial capital would allow. This can potentially amplify both profits and losses, making it crucial for traders to understand its implications.Understanding Leverage Rat...

What scams exist in leveraged trading of virtual currency contracts?

Dec 16,2024 at 12:42pm

What Scams Exist in Leveraged Trading of Virtual Currency Contracts?Leveraged trading of virtual currency contracts, also known as margin trading, can be a lucrative way to increase your profits. However, it is important to be aware of the various scams that exist in this market so that you can protect yourself from losing your money.Pump-and-dump scams...

What is 20x leverage on Bitcoin contracts?

Dec 16,2024 at 12:40pm

What is 20x Leverage on Bitcoin Contracts?IntroductionLeverage is a powerful tool in the world of trading that can magnify both profits and losses. However, it's essential to understand the risks involved before using leverage, especially when trading volatile assets like Bitcoin. In this comprehensive guide, we will delve into the concept of 20x levera...

What is the difference between Huobi’s margin trading and contract trading?

Dec 16,2024 at 12:39pm

Understanding the Distinctions between Huobi Margin Trading and Contract TradingIntroductionHuobi, a leading cryptocurrency exchange, offers diverse trading options to cater to traders' varying risk tolerance and investment goals. Among these options are Margin Trading and Contract Trading, each with distinct features and trading mechanisms. This compre...