Bybit Short Tutorial

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 “Derivativessection. 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!

Learn how to trade a long position on Bybit in our Bybit Long Tutorial.

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:

  1. Market evaluation

    Examine different time frames to get a good idea of the current market situation.

  2. 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.Short Position auf Bybit eröffnen

  3. Profit taking

    Use the buttons for a limit or market order under “Close By” to close your position.Take Profit auf Bybit

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.

Example of a falling price
Example of a falling price

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.

ByBit Order Form
ByBit Order Form

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.

Close By function for the position
Close By function for the position

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

How do I open a short position 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.

What does short mean in trading?

Short means when you bet on falling prices while trading. In finance, this is called a bearish position or “going short”.

What does letting a short position play out mean?

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.

What is a net short position?

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.

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