Introducing Short Selling on Bitvavo

Markets don’t always go up, and trading strategies don’t have to rely solely on rising prices. With Short Selling on Bitvavo, you can take advantage of falling crypto prices, all within a clear, transparent, and risk-managed environment.

Short selling works by borrowing crypto and selling it at the current market price. Later, you buy it back to return it. If the price drops, you may profit from the difference; if the price rises, you incur a loss. On Bitvavo, positions are isolated, non-leveraged, and secured with EUR-only collateral, so your maximum loss is limited to the amount you commit. 

Short selling lets you trade both rising and falling markets, giving you the flexibility to seize opportunities on either side.

Why short sell on Bitvavo?

Short Selling on Bitvavo offers several advantages for traders:

• Add flexibility to your strategy by taking advantage of downward price movements with short positions.

• Available for 15+ crypto assets, including BTC, ETH, XRP, SOL, and ADA.

• Start trading from just €10 and stay fully informed with transparent pricing and competitive transaction and borrowing fees.

What are the potential downsides?

Short selling in general involves risks you should carefully consider before opening a position:

• Higher risk exposure: Losses can increase quickly if the market moves against your position.

• Liquidation risk: If your health ratio falls below Bitvavo’s threshold, your position may be liquidated without notice, possibly at unfavorable prices and with a fee applied. 

• Market volatility: Sudden price swings can lead to rapid losses.

• Costs and timing: Fees and holding costs may impact overall returns. Please find an overview of the fees in our support article.   

Managing risk and collateral

Collateral secures your position and keeps risk controlled. It’s the amount of euros you commit upfront to secure your position and ensures your maximum loss is limited. By holding positions with EUR-only collateral, Bitvavo keeps risk transparent and predictable while allowing you to trade confidently.

Key points include:

• Positions are backed by EUR-only collateral

• Maximum loss = your collateral

• Positions will be automatically liquidated if the market moves too far against you

• You’ll receive a notification if your short position’s Health Ratio drops below 120%. The Health Ratio is a measure of the safety of your position. For a short position, it indicates how close your position is to liquidation. A higher ratio means your position is safer, while a lower ratio signals higher risk.

How to open and close a Short Position

Opening a short position is simple:

• In the app:

  • Tap the Trade button (blue with two arrows)  → Short sell

  • Choose an asset

  • Enter your EUR collateral

  • Preview and confirm

• On web with Bitvavo Pro

  • Use the Short tab

  • Enter your collateral; position size is automatically calculated based on collateral and fees

• Tracking & closing positions:

  • Monitor all positions via Wallet → Short Selling

  • You can close manually at any time to secure profits, limit losses, and avoid liquidation fees

Want to dive deeper? Learn more about fees, liquidation mechanics, and examples in our support article.

Fees for Short Selling on Bitvavo

All fees are visible in the position preview before you confirm, so you know exactly what you’ll pay. 

Short Selling on Bitvavo includes:

• Standard trading fees when opening and closing a position

• Borrowing fees, accrued hourly and charged daily (varies per asset)

• A 2% liquidation fee if Bitvavo closes a position automatically

With Short Selling on Bitvavo, you’re not limited to rising markets. Whether prices go up or down, you have more ways to trade, with clear risk limits, full transparency, and control over your positions. Explore Short Selling today and discover new opportunities in the crypto market.

Disclaimer 

Warning: Short selling involves risk. Always ensure you understand how it works and only trade with amounts you can afford to lose.

Short selling can be a powerful strategy for traders who want to benefit from market downturns or manage risk more actively. But it also comes with higher complexity and potential losses. Before trying it, make sure you understand how it works, from borrowing and collateral to fees and liquidation, and start small while you learn.

Digital assets are highly volatile and can result in partial or total loss. Invest only what you can afford to lose. Always do your own research. Past performance does not guarantee future results.