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RE: Bitcoin Bears Unleashed? Interactive Brokers Folds, Will Allow Clients To Short Futures
Tank you for posting! Interesting article. But pay attention @zer0hedge when you say:
So prepare for the pending short squeeze as all 'the smartest people in the room' pile in short on this no-brainer bubble...
Short squeeze is when an asset grows and so short traders have to close positions and buy, triggering another price increase.
What you are thinking to is a long squeeze, that will lead to close long positions triggering price drop.
Ayway, many operators aren't giving theyr customers the possibility of margin trading on the future or are offering very small leverage, because of high risk and low liquiditi for borrowing futures.
So, at the moment in my opinion there aren't the elements for a really big sqeeze of any kind
perhaps i'm reading it wrong, but seems to me he's being sarcastic when saying"the smartest people will short"... that if the rest of the world keeps pushing the price higher, these "smart people" in their short positions will get squeezed...
the potential upside seems unlimited, the potential downside is only 100% but if you leverage short, your potential losses are seemingly unlimited... risky position to take perhaps
I am not so sure. Great investors usually drive the market, they have great money and they usually have the best timing. If they short-sell, trend follower can increase price spike and trigger a great drop