How does 'buy to cover' work in cryptocurrency trading on eTrade?

3 answers

• Nov 27, 2021 · 3 years ago
  Sure, 'buy to cover' is a term used in short selling, which is when you borrow a cryptocurrency and sell it in the hopes of buying it back at a lower price. When you 'buy to cover' on eTrade, it means you are closing your short position by purchasing the same cryptocurrency you initially borrowed. This process allows you to return the borrowed cryptocurrency to the lender and exit your short position. It's important to note that 'buy to cover' can only be done if you have previously shorted the cryptocurrency on eTrade.
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• Nov 27, 2021 · 3 years ago
  The 'buy to cover' process on eTrade involves a few steps. First, you need to identify a cryptocurrency that you want to short sell. Once you have identified it, you can borrow the cryptocurrency from eTrade and sell it on the market. When you are ready to 'buy to cover', you need to place a buy order for the same cryptocurrency on eTrade. This will allow you to purchase the cryptocurrency and return it to eTrade, closing your short position. It's important to carefully monitor the market and choose the right time to 'buy to cover' in order to maximize your profits.
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• Nov 27, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that 'buy to cover' is a common practice in cryptocurrency trading on eTrade. When you 'buy to cover', you are essentially reversing your short position by purchasing the same cryptocurrency you initially borrowed. This process allows you to exit your short position and return the borrowed cryptocurrency to eTrade. It's important to carefully consider your trading strategy and market conditions before deciding to 'buy to cover' on eTrade.
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