What are the risks of shorting crypto on FTX?

3 answers

• Dec 18, 2021 · 3 years ago
  Shorting crypto on FTX can be a risky endeavor, as the cryptocurrency market is highly volatile. Prices can fluctuate rapidly, and if the market moves against your short position, you could incur significant losses. It's important to carefully analyze market trends and have a solid risk management strategy in place before engaging in short selling on FTX.
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• Dec 18, 2021 · 3 years ago
  Shorting crypto on FTX carries the risk of potential margin calls. If the value of the cryptocurrency you are shorting increases significantly, you may be required to add more funds to your account to maintain the required margin. Failure to do so could result in the liquidation of your position and further losses.
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• Dec 18, 2021 · 3 years ago
  When shorting crypto on FTX, it's crucial to consider the risk of exchange hacks. While FTX has implemented robust security measures, no exchange is completely immune to hacking attempts. It's advisable to use strong security practices, such as enabling two-factor authentication and storing your funds in a secure wallet when not actively trading.
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