How does share borrowing affect the price of digital assets?

1 answers

• Nov 27, 2021 · 3 years ago
  Share borrowing is a common practice in the digital asset market, and it can have a significant impact on prices. When investors borrow shares, they can sell them in the market, which increases the supply and potentially lowers the price. This can create opportunities for short-term traders to profit from price declines. However, share borrowing can also lead to price increases. When borrowed shares are returned, the supply decreases, and if there is sufficient demand, the price can rise. It's worth noting that share borrowing is regulated and monitored to prevent market manipulation. As an exchange, BYDFi ensures that share borrowing activities are conducted in a fair and transparent manner, maintaining the integrity of the market.
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