Bybit Short Tutorial – Step by Step
In this Bybit Short Tutorial you will get step by step instructions on how to open a short position on ByBit in the “Derivatives” section. With a short position you are betting against a market, i.e. on a falling price. The more the price falls, the more profit you make.
Short trading requires even more experience than long trading and should not be done by inexperienced traders. Be sure to work with a stop loss order to protect yourself from substantial losses!
At a glance – Use short position on Bybit
Time needed: 10 Minuten.
The 3 important steps when opening and closing a short position on Bybit:
- Market evaluation
Examine different time frames to get a good idea of the current market situation.
- Risk and capital management
Determine the maximum amount you are willing to lose based on your risk tolerance and your confidence in assessing current market conditions. Once you are fully confident, you can set the size of your position under Qty (Quantity) and click “Sell / Short” to open your position. Be sure to hedge your position with a stop loss order.
- Profit taking
Use the buttons for a limit or market order under “Close By” to close your position.
How to trade a short position on Bybit
Step 1: Assess the market
As a first step, analyze the market very carefully. Be sure to use all time frames available to you for this purpose. Just because a price falls on the hour, for example, does not necessarily mean that it is a clear trend. If you are sure about your bets, it’ s time to think about risk and use of capital.
Step 2: Capital & Risk
How confident are you about your trade? What amount are you willing to lose in case of a miscalculation? These are decisions you should make at this point. Choose now whether you want to start with a limit or a market order and which amount you want to open the trade with.
At Qty (Quantity) you enter the USD amount for your position. Now click on “Sell / Short” and your position will be opened against the market. Whether you make a market or limit order depends on your decision in the moment of entering the position. If you want to open the position immediately at any price, you can use a market order, if you want to open at a very precise price, you can use a limit order.
Step 3: Take Profit
Use the Buy / Long button or the “Close By” option to close your trade and take profit.
Bybit Short Tutorial – Conclusion
As you can see, a short trade is basically pretty straightforward. This way of trading usually works similarly on all popular exchanges with margin or derivatives trading options. If you have any questions or suggestions about the topic of short trading on ByBit, please feel free to write us a comment below this post.
Frequently asked questions and answers about short positions on Bybit
Read this article! If you want to find out how to open a long position on Bybit, you can read our Bybit Long Tutorial.
Short means when you bet on falling prices while trading. In finance, this is called a bearish position or “going short”.
Letting a short position play out is when you have a short position open at a profit and let it continue to play out in the hope of making even more profits.
A net short position describes the net balance between the total short and long positions of an investment account.
Important risk notice:
This service or the provider advertised here is only suitable for professional traders. Users without sufficient experience usually suffer a total losswhile trading here. Trading with leverage is highly risky and leads to poor risk management. Use this service only as a professional trader with sufficient experience in trading and leverage.
Also in / Auch auf: Deutsch