Post
Topic
Board Speculation
Re: Ways to Short BTC/USD
by
EuSouBitcoin
on 15/03/2013, 16:06:30 UTC
Are there any good ways to profit in USD terms if BTC/USD goes down?

Technically, buying dollars with them is shorting bitcoin.  But you are probably looking for leverage to do a trade.

 - http://en.bitcoin.it/wiki/Trade#Financial

If I am long USD and flat BTC with BTC/USD at $47 and then BTC/USD drops from $47 to $46 I can buy more BTC at $46 so I would have profited in BTC terms but in USD terms, I still have the same number of USD. So in USD terms, I didn't profit any from the move from $47 to $46. I'm looking for ways to profit in USD terms, not BTC terms, if the BTC/USD exchange rate goes lower.

If you buy same number of BTC at 46, then you will have some USD left over. That is your profit in USD terms.

Assume I have 100 USD and 0 BTC with BTC/USD at 47. BTC/USD drops from 47 to 46. I still have 100 USD and 0 BTC. How did I profit in USD terms on this price move?