Taking a position that profits when price falls, by borrowing and selling an asset or using a derivative.
Last verified 13 September 2026 · written by the DexLadder team
What it means
Taking a position that profits when price falls, by borrowing and selling an asset or using a derivative.
Why it matters when you trade
Shorting is structurally harsher than going long: the gain is capped at 100% while the loss is unbounded, borrow or funding is charged for the duration, and crowded shorts are fuel for squeezes because forced covering is buying. It is also the only way to express a negative view, and in crypto negative views spend long stretches being correct and expensive.
Worked example
A short at 100 covered at 150 loses 50% while the equivalent long from 100 to 50 loses the same — but the short had no floor.
See it on live markets
DexLadder runs shorting against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.