I am working on a project and would like to create long and short orders (no need for leverage).
As my KYC is in France, I am not allowed to use the Futures, so I thought about Margin. But there is no testnet for Margin, so I checked if shorting was possible on the Spot market. I thought it was not possible, but the academy actually says it is possible: What Is a Spot Market and How to do Spot Trading? | Binance Academy
Even after reading the API documentation, I am not sure how to do that, could you guide me on this, please?
I didn’t see any occurrence of “short” for the margin either, only for futures.
Thank you for your help!
Spot margin trading is not available on testnet.
Spot margin trading is different from Futures. In Spot margin trading, you are able to borrow assets and trade in the spot market. However users have to pay the interest together with the borrowed assets.
Binance API Documentation has all margin related API endpoints, that may be helpful to understand how it works. Like, you can call endpoint to borrow and repay assets.
My point was:
- the academy says it is possible to short on spot, but it sounds weird to me.
- I didn’t find anything related to shorting either on the spot or margin’s API documentation. Did I miss something there? If it exists on spot, it solved my problem as I would have both a short entry and a testnet.
I think I understood, please let me know if I’m wrong.
- it is possible to short on the spot market, but only using margin.
- shorting on margin is done with a
sideEffectType MARGIN_BUY to open the position, and a
sideEffectType AUTO_REPAY to close it.
It depends on how you understand the term of “short”.
If you borrow 1 BTC and sold on spot market for like $30000; When the BTC price goes down to $20000, you can buy it back. After repaying it back with interest, you will get the profit of $30000-$20000-interest. There is not much problem of calling it SHORT.