Short on Spot and Margin

API Spot/Margin API
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1

Hello,

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!

2

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.

3

Thank you.

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.

:warning: edit :
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.
4

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.

5

I will explain the process in which the short in margin is based and which I am applying in my app, suppose that the price of BTC is $25K and then you borrow 1BTC at that moment, what you must do is freeze that loan by passing it to a stable coin (USDT, BUSD, etc) then in your account you will have a balance of $25K and you owe 1BTC; After a while you decide to pay the loan but now 1BTC costs $15K so to pay off the account you would have to spend $15K of your $25K balance to buy 1BTC and pay off the loan so your profit would be $10K but you also have to discount the interest for the loan and the commissions for the purchase/sale operations that you made