04-10-2018, 05:11 PM
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#2258
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Hacked RS to become a mod
Join Date: Feb 2002
Location: Sunny Hong Kong
Posts: 55,110
Thanked 25,916 Times in 9,108 Posts
Failed 1,574 Times in 720 Posts
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Quote:
Originally Posted by !LittleDragon
Shorting works like this and works for any asset really...
I borrow a GPU from you, I immediately sell it for $1000
When I feel like prices have bottomed out at $500, I buy it back and return the GPU back to you. I just made $500 off that transaction.
If the GPU increases in price to $1500 and I decide to cover the short, I'll have to buy back the GPU for $1500, I give you the GPU and I lost $500...
Of course, because I borrowed the GPU from you, I'll be paying interest to you until I return the GPU.
I used a GPU as the asset since this is a Bitcoin thread... But yeah, you can make money on falling asset prices...
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I still don't get it.. who is loaning their bitcoins to people to fuck around with at no risk?
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