How traders earn in a short trade (bearish trade) ? Normally, we think profit = price rises. But in a short trade (bearish trade), you’re betting on price falling. Here’s how the profit works step by step: 1. Borrow & Sell at High Price • Suppose you short sell 1 Bitcoin at $30,000. • You don’t own it, you borrowed it from the broker and sold it immediately at $30,000. 2. Wait for Price to Drop • Price falls to $25,000. 3. Buy Back at Lower Price • You buy 1 Bitcoin back at $25,000 to return it to the broker. 4. Return the Bitcoin • You give back the 1 Bitcoin you borrowed. ✅ Your profit = Sell Price ($30,000) – Buy Price ($25,000) = $5,000 So, in short trading: • You sell high first. • Then buy back low later. • The difference is your profit. 👉 That’s why in bearish markets (prices falling), short traders can make money while long traders lose.