Quote:
Originally Posted by SkinnyPupp
I still don't get it.. who is loaning their bitcoins to people to fuck around with at no risk?
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Exchanges. I believe you pay % interest (at least with equities, I have never short crypto so not sure). There are risk because of how volatile it is. Frankly, I would never short something that can move 10%-30% in a few hours and trade 24/7. You can lose your shirt while you sleep. If you don't have an algo running, I would not touch it with a 10ft pole.
You can get a margin call if your balance can no longer pay for your short position, i.e. Exchange will automatically buy to close your position, so there are usually no risk to the exchange itself while they earn daily interests for your short position.