When you buy crypto in the traditional way, you're hoping the price goes up. Short selling — also called "shorting" — lets you profit when the price goes down instead.
On Coinmerce, this is offered as Spot Margin: a fully collateralised way to take a short position on a curated list of crypto assets, without the complexity of futures or perpetual contracts.
The basic idea
Imagine you think Bitcoin is overvalued at €60,000. With Spot Margin you can:
Borrow 0.1 BTC from Coinmerce
Sell it immediately on the market for €6,000
Wait for the price to drop
Buy back 0.1 BTC at the new (lower) price and return it to Coinmerce
If BTC drops to €54,000, buying back 0.1 BTC costs €5,400. The €600 difference is your profit (before fees).
If BTC rises to €66,000 instead, the buyback costs €6,600 — a €600 loss on the trade.
How is this different from buying crypto?
Buying (going long) | Short selling |
Profit when price rises | Profit when price falls |
You own the asset | You owe the asset |
Maximum loss = your investment | Maximum loss = your collateral |
No borrowing fees | Borrowing fees every 4 hours |
Can hold indefinitely | Cost grows the longer you hold |
Who is this for?
Spot Margin is designed for users who:
Have an active view that a specific asset is likely to fall in the short term
Understand crypto market dynamics and volatility
Are comfortable monitoring positions actively
Can afford to lose the collateral they deposit
If you're new to crypto, or focused on long-term wealth building, short selling is not the right tool. Coinmerce gates access behind a knowledge test for exactly this reason.
What makes Coinmerce's Spot Margin different?
Many platforms offer high-leverage shorting that can wipe out an account in minutes. Coinmerce is intentionally conservative:
1× leverage only — your borrow size never exceeds your collateral
Maximum loss capped at the collateral you deposit
Each position is isolated — losses on one trade can't drain another
€10,000 cap per asset — limits exposure to any single market
The result is a product that lets you express a bearish view without the catastrophic risk profile of leveraged trading.
Next steps
Read How Spot Margin works on Coinmerce for the full mechanics
Review the fee structure
Understand liquidation and the Position Risk Ratio
When you're ready, complete the knowledge test to unlock access
⚠️ Short selling carries significant risk. Never deposit more collateral than you can afford to lose entirely.