Here's why: you buy x bitcoins, you deposit it on bitmex, bitcoin drops by 20% you earn a 20% but your btc now are also worth a 20% less against fiat money. I'm wrong?
You can't make money shorting btc on bitmex
That's why leverage exists.
you are right
really makes you think
Yes so you are obligated to use minimum x2 leverage
buy it on cheap price, wait for price to go up??
You're not obligated, you can still use 1x shorts to ensure you don't lose money, i.e. hedging.
You're wrong.--->
Leverage increases that profit immensely.
And re-sell on a tick up in price.
Profit.
What happens when you short to 0?
You sell someone your BTC @ 7000$ and buy infinite BTC back.
x*1'6*0'6=0'96. If you go at x1 you are going to lose money
OP you're basically describing Tethering up (shorting with x1 leverage) without the subsequent BTC price movement
Tether up -> BTC drops -> can buy more BTC than before -> but at that exact moment it's worth as much USDT as you paid for it i.e. you didn't make any gains
Congratulations on being a genius
Yeah that's not how shorting works. If you short BTC at 7000$ you'll get 7000$ for that BTC no matter the current BTC price. So the more it goes down the more you profit because you can buy it back for cheaper (or more of it).
this board fucking sucks holy shit
You short 100$ of BTC from 10 000 to 5000. You got a 50%(150$). Since bitmex is not in fiat and BTC is down a 50%. Your earning are depreciated a 50% against fiat when you cash out BTC from bitmex(150*0'5=75$)
I have bitcoins i sell them i can buy more when it drops...
Bitmex is a futures in BTC not in fiat
>You short 100$ of BTC from 10 000 to 5000. You got a 50%(150$). Since bitmex is not in fiat and BTC is down a 50%.
There aren't infinite, how do you take it out from the exchange, I don't get this.
You can't close your short if it goes to 0.
Well thanks, that sounds like a problem.
Aside from everyone explaining why you are wrong, doesn't the fact that it exists and so many people use it make you think just a little?
You short 100$ from 10 000 to 5000 you earn a 50% (50$). Your initial 100$ of BTC are now worth 50% (50$). 50+50=1000$
Tell me how is wrong
But at least you're not triggering any taxable event since you're not gaining any fiat and it's BTC to BTC as opposed to selling it for USDT.