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by vidarh 4506 days ago
You can protect against the risk by only providing the service between wallets held and controlled by you on your own exchange.

There also are brokers providing indirect Bitcoin shorting with 1:10 leverage in the form of CFD's (contracts for difference). Of course they could opt to always or sometimes not actually trade the coins - to their clients it makes no difference, as no actual coins can be moved in/out of the accounts.