What is the meaning of en corto in the context of cryptocurrency?

3 answers

• serenachengJun 10, 2024 · a year ago
  In the context of cryptocurrency, 'en corto' refers to the act of short selling. It is a trading strategy where an investor borrows a cryptocurrency and sells it on the market with the expectation that its price will decrease. The investor then buys back the cryptocurrency at a lower price, returns it to the lender, and profits from the price difference. Short selling can be a risky strategy, as the price of the cryptocurrency can also increase, resulting in potential losses for the investor.
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• Alexandra NikitinaMay 05, 2024 · 2 years ago
  When it comes to cryptocurrency, 'en corto' means short selling. It's like betting against a cryptocurrency's price. You borrow the cryptocurrency, sell it at the current market price, and hope to buy it back at a lower price in the future. If the price drops, you make a profit. If the price goes up, you may incur losses. Short selling can be a way to profit from a falling market, but it's important to understand the risks involved.
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• Cod AccountsFeb 05, 2023 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that 'en corto' in the context of cryptocurrency refers to short selling. It is a common trading strategy used by investors to profit from a decline in the price of a cryptocurrency. By borrowing and selling the cryptocurrency at the current market price, investors can potentially buy it back at a lower price in the future, returning it to the lender and pocketing the price difference. However, it's important to note that short selling carries risks and requires careful consideration.
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