In this article, we explain what Shorting is on Cryptohopper and how it works.
Shorting is the practice of making a profit while the price of an asset goes down. Our way of Shorting is a little bit different than "traditional" shorting. Our Shorting is a buyback function. When you expect a position to make a loss, you initiate a Short, and your bot will sell the position and reserve these funds. When you think the price has reached its bottom, you close your Short and buy back the position.
See how Shorting works in practice on Cryptohopper: You bought 1 BTC for 8,000 USD, and you think that BTC is going to drop in value. You Short this BTC position. The bot will then sell your BTC, reserve these funds, and track the position in your shorting tab. You set up a buyback price (the price you want the bot to buy back the BTC). When BTC hits your chosen buyback price, your bot will automatically buy back BTC.