Shorting Bitcoin Using CFDs

Bitcoin’fabulous rise seems like unstoppable, with many people are hurrying to get on board so as not to miss out. Then again, there are financial vehicles to choose from and that may reverse Bitcoin and the cryptocurrencies prices to the opposite direction.

Shorting
    Shorting Is an option to hedge the bubble bursting? .
  Shorting is a trading terminology which means to sell an asset at one price in order to buy it back for a reduced cost at in the future, most commonly in a contract for difference (CFD) . The idea is purely speculative but can have a big influence on values.
  The Bitcoin market at the present time is showing a bullish direction; many crypto buyers are attempting to keep onto their position believing that its value for money will surge and this is facilitating the rise. As such, there is a lack of sellers on the market. The capacity to short Bitcoin will add more sellers to the market.

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  Bitcoin CFD contracts  

CFDs are derivative investment products that allow investors to short Bitcoin without actually possessing it. This scheme works in a way that the trader signs up to a contract to sell an instrument and buy it back at a later date (or vice versa: going long). The principle of long and short comes from the perception that one must wait for an asset to rise in value, whilst there is the opposite belief that a slide in value will likely materialize at any moment.
  CFDs essentially make it possible for individuals to speculate on multiple product values in the future without the need of physically having to buy the assets. If we translate this into Bitcoin market terms, we can easily picture an influx of traders looking to short the cryptocurrencies,. an instrument which will increase the supposed supply on the market, and therefore {slow|reduce|lessen Bitcoin’s boom and provide balance to the market. .

  1. http://f4italia.superweb.ws/blogi/archives/45
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  3. http://f4italia.superweb.ws/blogi/archives/47