BOTS Shorting Summarized
The Shorting Feature was released last month (October 2022) on the BOTS platform to allow bot creators to create and users to utilize shorting bots.
BOTS Shorting Summarized
The Shorting Feature was released last month (October 2022) on the BOTS platform to allow bot creators to create and users to utilize shorting bots. The first bot created via this feature is called Bear Fighter, and its release has been met with great interest from both bot creators and users alike.
The goal of this article is to provide a comprehensive overview of shorting on our platform. It will include references to other sources for more detailed information in case you want to explore the topic further.
What is shorting?
Our marketing department has penned an excellent article on the topic. Here are some key points from the piece:
- It provides a plain and simple introduction to shorting, with easy-to-understand language and straightforward examples for both scenarios: when shorting goes as planned, and when it doesn't.
- After that, there is a summary of the diverse ways you can short crypto. Three different approaches are explained in further detail so that you can select which one works best for you.
- The article finishes with a clear explanation of the distinctions between traditional and short trading.
To read the full article, follow this link: What does it mean to short crypto?
BOTS API V3: BNF API
The third generation of our API for bot creation is now available and supports the development of short-trading strategies. With this update, you will be able to create short bots on our platform. This new API version also provides more transparency as it offers open information on assets that are currently in the bot. It's important to note that only BNF APIs support the creation of short trading strategies - the previous version (BEM API) did not include this function.
If you want to learn how to connect your long or short trading bots, read our documentation page: BNF API - BOTS - Documentation
Bot Creator’s ‘Short’ Feature T&C
The 'Shorts' Feature Terms and Conditions included here form an additional legally binding agreement in addition to Bot Creator's Terms and Conditions and General Terms and Conditions of the BOTS Platform. The following are a few of the 10 total points:
- Eligibility: Only experienced bot creators will be offered the chance to use the 'Short' feature. An experienced bot creator is any creator whose existing trading strategies available on the BOTS platform show a consistent positive profit and loss ratio (PnL) in at least three consecutive months under our Bot Performance Policy and/or any other relevant policies. But ultimately, whether a creator is considered experienced remains solely up to us here at BOTS.
- Funds Lending: Short trading bots will borrow additional funds from Binance at interest rates set by Binance. Here are the rates: Borrowing Fees Rate (“the Loan'')
- Fees: BOTS will charge the bot creator an extra fee of 0.01% (one basis point as per the Bot Creator’s Terms and Conditions) for using a 'Short' feature on top of the Borrowing Fees Rate.
- Maximum Loan: BOTS reserves the right to set and change from time to time the maximum allowed Loan percentage per Trading Strategy.
- Allowed Coins: The short trading strategies that bot creators release in the BOTS app can only trade with Bitcoin (BTC) or Ethereum (ETH).
- Suspension and Removal of Shorts Trading strategies: BOTS company has the right to remove or suspend any short trading bot that is suffering from excessive loss, with no prior notice needed to be given to the creator of the said bot.
To learn about the other points not mentioned here, please read our full 'Short' Feature Terms and Conditions: Bot Creator’s ‘Short’ Feature T&C
You can read our Terms and Conditions in full by clicking this link: BOTS Terms & Conditions
With that said, you now have all the information you need to be knowledgeable about shorting on the BOTS platform. In addition, more short trading bots are currently in development and will soon be released. Be sure to check back for updates.
The information we offer does not constitute investment advice. Please always do your own research before investing.
Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.