Example of crypto short-selling
If, for example, ether is trading at 11.1285 and you believe its market price will decrease, you might decide to open a short CFD position on 160 ether CFDs.
Let’s say a couple of days later the buy price reaches 10.1345 then you decide to close your position. This will mean you’ve made a profit of $159.04 in profit ([11.1285 –10.1345] x 160 = $159.04), excluding additional costs.
If the price of crypto rises, you’d make a loss. For example, if ether rose to a buy price of 13.1345, you’d have made a $320.96 loss instead ([11.1285 – 13.1345] x 160 = – $320.96), excluding additional costs.
