Short Selling (Simple) makes it easier to short sell crypto. Instead of pairing your USD against a crypto, you simply select the crypto you want to short and let us do the hard work for you.
*Please note the risk/reward ratio with Short Selling (Simple) is the same as all of our short-selling products.
1. The liquidation threshold is the point at which your collateral is sold to repay the loan. It’s calculated as follows: (collateral value / (loan amount + accrued interest)) x 100.
2. Whether anything left over from the automatic sale of your collateral is returned to you.
Short selling is a high-risk trading strategy that involves borrowing an asset you believe will fall in price and then pocketing the difference when you repay.
For example, if you borrow an asset worth $1,000 and then sell it on the market, you have $1,000. If that asset falls to $900, you can then buy it again at the lower price, repay the lender, and keep the $100 difference.
However, if your prediction is wrong and the asset increases in price, you’ll have to pay more to repay the asset. This can result in some fast and significant losses if you’re not careful.
Short Selling (Simple) takes the hassle out of short-selling by making the pairs for you. You simply deposit the USD and select the crypto you want to short.
We will automatically create pairs for the following cryptos:
Next, you choose how much of your chosen crypto you want to short. Remember – your collateralized USD is at risk if the crypto increases in price, so only short what you can afford.
You then need to set a stop loss and take profit limit. These are lower and upper price limits of the crypto that can help you secure profits and minimize losses.
With these values set, you’re ready to hit the “Short Crypto Now” button.
It’s then a matter of waiting to see how the market behaves – will your bet pay off? We hope so!
You can wait until you hit your “take profit” limit or manually repay your crypto whenever you like, as either USD from your available short-selling balance or as crypto from your coin balance.
However, if the price of your shorted crypto rises, your collateral will be at risk. Once your collateral value falls to 110%, it’s sold and you lose it.
Your take profit price is the price at which you repay your shorted cryptocurrency.
You set a price lower than the current market price and when the market hits that level, you repay your shorted cryptocurrency and keep the profits.
For example, let’s say you’re shorting bitcoin. It’s current price is $50,000. If you believe it will fall 10%, you’d set your take-profit price to $45,000.
When bitcoin’s price hits $45,000, you repay the borrowed cryptocurrency in its equivalent value in USD from your short-selling balance. You keep the profits minus the matching fee and interest rate.
How does MyConstant investing work?
When you invest with us, you first send your funds to our custodial partner Prime Trust, an accredited US financial institution.
We then lend on your behalf to collateralized borrowers, liquidity pools, and decentralized exchanges in return for interest.
When you’re ready to withdraw, Prime Trust will process your withdrawal request. There is no charge or fees for fiat (USD etc) withdrawals. You'll keep the interest you earn up to the moment you withdraw your funds.
You can choose our instant access account or invest for a fixed term. Our instant access account has a 24-hour term that’s automatically extended every 24 hours unless you choose to disable the product or withdraw your funds.
All account statements for MyConstant investment products are stated in USD equivalent terms at all times.
Is CONST LLC a bank?
Please note that CONST LLC (hereafter referred to as “we”, “us”, or “Company”) is not a bank or deposit account, nor is it a regulated financial institution. No interest will be paid on any funds or other assets held in your MyConstant account and all assets directly held by us are not insured by us or, except as set forth below, any third party or any government agency.
We work with independent third-party financial institutions such as Prime Trust to provide cash management for the fiat deposits. When not on loan, the fiat deposits are held in one or more depository accounts at US banks or trust companies whose deposits may be insured.
