Betoken
  • Betoken overview
  • Betoken investment cycle
  • Deposit & Withdraw
    • How to deposit your capital?
    • What is Betoken Share token (BTKS)?
    • Do I receive my BTKS immediately after purchase?
    • How can I see my BTKS balance in Metamask?
    • What is the lockup / liquidity of the fund?
    • How can I follow the activity of the fund?
    • What is the fees structure?
    • How do I make an additional capital connection, after I’ve already made an initial one?
  • Manage the fund
    • Betoken income simulation
    • How do I get started as a Betoken fund manager?
    • What is Kairo?
    • Do I receive my Kairo immediately after purchase?
    • Why is there a max Kairo purchase amount?
    • How can I see my KRO balance in Metamask?
    • How can I manage and follow the activity of the fund?
    • How is a basic order created?
    • How is a short order created?
    • How is a leveraged long order created?
    • What would cause a margin order to be liquidated?
    • How does risk threshold work?
    • How does the manager's monthly commission work?
    • How does Betoken punish huge manager’s losses
    • How does Betoken handle "dead" managers?
  • Govern
    • What is Betoken's upgrade governance process?
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  • How short orders work
  • How to create short orders

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  1. Manage the fund

How is a short order created?

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Last updated 5 years ago

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Short orders are orders where you're betting on the decrease of an asset's price. If the price of the asset decreases, you earn a profit; if it increases, you lose money.

How short orders work

A short order is created by taking out a loan denominated in the asset that you wish to short, with collateral denominated in a stable currency (like DAI or USDC). The loaned asset is immediately converted to the stable currency. If the asset's price falls, the value of your debt also falls, meaning you need to pay back less money, giving you a profit. If the price rises, your debt increases, and you lose money.

Betoken uses as the margin trading platform for executing leveraged long & short trades.

You can also make leveraged short orders, which amplifies the amount of returns (or losses) you make. For instance, if you make a short order with 0.5x leverage, and the price of the underlying asset fell by 10%, your return would be 5%.

How to create short orders

Click "Make Investments" on the manager portal's header, select an asset with the label "Margin Trading", and you will be able to select the short order option, with up to 0.5x leverage.

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