Sorry, I forgot to provide another link with regards to short selling. This is from Fidelity:
https://www.fidelity.com/learning-center/investment-products/etf/selling-short-etfs
However, short selling in the ETF marketplace is a large part of ETF trading volume, .....
I'm across regular short selling. (Shorting bitcoin would be stupid), but how theoretically would a naked short of a bitcoin ETF look?
Hi @mattclarke
I'm not a trader on Wall Street but I understand the logic behind it. What I would do is 'short' a massive amount of theoretical bitcoin knowing it would cause a panic and price drop in the REAL bitcoin market. Then, I could enter into the market (or another firm I've buddied with) and BTFD. The price would eventually correct (probably upwards) and bingo! Mass profit.
Here is a quote from another link (sorry to share links but better than you taking my word for it):
https://www.thestreet.com/story/10292209/1/ask-thestreet-naked-shorts.html
I like bitcoin the way it is. No market rigging games (except for perhaps some exchanges). You can only sell or buy bitcoin that actually exists. It's called the free market.
But shorting is still a contract. (to provide n of A on a given date, in exchange for n of B right now) Who's the other party?
Or is that where the 'naked' bit comes in?