BIT Brokerage launches US equity short selling

BIT Brokerage has launched U.S. equity short-selling services, expanding its platform beyond margin trading and setting the stage for planned options trading in the future.

The service, announced on July 13, 2026, allows users to take both long and short positions in U.S.-listed stocks from the same account. The company said the expansion is designed to give traders more flexibility at a time when equity markets remain sensitive to interest rates, corporate earnings, sector rotation, and broader economic data.

Short selling gives traders a way to seek gains when a stock price falls. It can also be used as a hedge against existing long positions. But the strategy carries elevated risk because losses can increase sharply if a stock rises instead of declines. BIT Brokerage said users of the new service will face risks tied to stock borrowing, market volatility, lending availability, borrow costs, and variable interest rates.

Cui, head of the firm’s brokerage division, said the launch is part of a broader plan to bring margin trading, short selling, and eventually options into one U.S. equities framework. According to Cui, the goal is to provide professional-grade tools that support both directional trades and hedging strategies inside a single account structure.

The company said the list of securities available for short selling will not be fixed. Instead, shortable stocks will be updated dynamically based on market liquidity, internal risk controls, and securities-lending conditions. That means some shares may be available to short at one point and restricted later if liquidity tightens or risk conditions change.

The launch also includes a time-limited promotion under which BIT Brokerage will waive stock borrow fees for eligible securities, subject to stated terms. The company said campaign details and updates will be posted through its official U.S. equities account on X.

What the new service changes

Before the update, BIT Brokerage offered U.S. equity access that included margin trading, commission-free trading on more than 10,000 U.S.-listed stocks and ETFs, and funding options using both stablecoins and traditional U.S. dollar bank transfers.

The short-selling rollout adds another layer to that offering. Traders can now use the same platform to take a bullish position by buying shares, or a bearish position by shorting shares, depending on their market view.

In a typical long trade, a trader buys a stock expecting its price to rise. In a short sale, the trader borrows shares, sells them in the market, and later seeks to buy them back at a lower price. If the shares fall, the trader may gain from the difference. If the shares rise, the trader may lose money and may need to buy the shares back at a higher price.

That makes short selling very different from simply buying stocks. A long position can go to zero in the worst case, but a short position can theoretically create unlimited losses because a share price can keep rising. In practice, brokerages manage that risk through margin requirements, position limits, buy-in procedures, and restrictions on hard-to-borrow securities.

BIT Brokerage said its approach will rely on a risk-management framework that determines which U.S. equities are eligible for shorting. Availability will depend partly on market liquidity and borrowing conditions. Stocks with limited share supply, heavy demand from short sellers, or high volatility may face higher costs or may not be available.

Why short selling matters in volatile markets

The launch comes as U.S. equities remain a large and active global market. Financial records from July 2026 place the total value of the U.S. stock market at roughly $69 trillion, underlining the size of the opportunity and the scale of risk for traders active in American shares.

Short selling often becomes more prominent during periods of market stress or uncertainty. When traders expect a company, sector, or index to weaken, they may use short positions to express that view. Others may use short exposure to reduce risk in an existing portfolio of long positions.

For example, a trader holding technology stocks might short a weaker sector to reduce exposure to a broad market decline. A trader with exposure to an index ETF might short a specific company facing earnings pressure. A hedge may not fully remove losses, but it can reduce the effect of price moves if structured carefully.

Still, short selling is not only a hedging tool. It is also used for speculation, and that can raise risk. Sudden price rallies, unexpected takeover news, strong earnings, policy changes, or sharp sector rebounds can create rapid losses for short sellers. In heavily shorted stocks, a fast upward move can force traders to buy back shares, adding more buying pressure in what is often called a short squeeze.

This is why brokerages typically require traders to keep enough collateral in their accounts. If a short position moves against a trader, the brokerage may issue a margin call or close the position. Such actions can occur quickly during volatile trading sessions.

Funding through stablecoins and bank transfers

One feature of BIT Brokerage’s platform is the ability to deposit and withdraw funds using stablecoins such as USDT and USDC, as well as through conventional U.S. dollar bank transfers.

The company says stablecoin-based funding can allow near-instant movement of funds into and out of accounts. That may appeal to traders who already hold dollar-pegged digital tokens and want faster access to U.S. equity trading.

However, it is important to distinguish account funding from securities settlement. Stablecoin transfers may move quickly on blockchain rails, but U.S. stock transactions remain subject to securities-market rules, brokerage processes, and settlement standards. Stablecoin access may improve how quickly a user can fund an account or withdraw balances, but it does not automatically change the underlying structure of U.S. equity market settlement.

Stablecoin use has grown in payments and digital-asset markets. Recent data cited by Webber put stablecoin payment volumes at about $390 billion. That figure shows how large dollar-pegged token activity has become, though stablecoin use in brokerage accounts remains subject to platform rules, compliance checks, and local regulations.

BIT Brokerage’s model links traditional equity trading with digital-asset funding rails. The company presents this as a bridge between conventional financial markets and blockchain-based payments. For traders, the practical appeal is speed and flexibility in moving dollar-linked funds. The risks include token issuer risk, blockchain transfer errors, regulatory changes, and the need to understand how deposits and withdrawals are handled.

Costs and risks to watch

Short selling can involve several costs beyond ordinary trading fees. A trader may need to pay a stock borrow fee, which compensates the lender of the shares. Borrow fees can be low for liquid, widely available stocks, but they can rise sharply for shares that are difficult to borrow.

There may also be interest charges tied to margin use. These rates can change over time, especially when central bank policy shifts. U.S. Federal Reserve interest-rate decisions can influence brokerage borrowing costs, equity valuations, and market sentiment. Higher rates may pressure some growth stocks, while lower rates may support risk-taking, though market reactions are rarely simple or uniform.

BIT Brokerage said short-sale users should consider market volatility, borrowing costs, and variable interest rates linked to securities lending. Those risks can change daily. A stock that is cheap and easy to short one week may become expensive or unavailable the next.

There are also operational risks. If borrowed shares are recalled by the lender, a short seller may be required to close the trade earlier than planned. If a stock becomes restricted, new short positions may not be permitted. If prices move sharply, the brokerage may raise margin requirements or reduce allowed exposure.

Traders also need to account for corporate actions. Dividends, stock splits, mergers, and voting rights can affect the economics of a short position. A trader who is short a dividend-paying stock may be responsible for payments equivalent to the dividend. These details can change the total cost of a trade.

The company separately says users who hold shares on the platform can maintain shareholder privileges, including dividends and voting rights. Those privileges apply to long share ownership and are different from the obligations that may arise when a user is short borrowed shares.

Options trading remains on the roadmap

The short-selling launch is also significant because BIT Brokerage is positioning it as a step toward options trading.

Options are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price before or at expiration. They can be used to speculate, hedge, generate income, or manage risk. But options are complex and can expose traders to rapid losses, especially when leverage, short options, or multi-leg strategies are involved.

By adding short selling now, BIT Brokerage is building out the infrastructure needed for a broader range of U.S. equity strategies. Margin, securities lending, risk controls, and account-level monitoring are all important components for a platform that plans to support options.

Cui’s comments suggest the firm wants a unified structure where traders can manage long positions, short positions, and future derivatives strategies without moving assets across multiple platforms. That could simplify account management, though it also places more responsibility on users to understand how each product works.

Company background

BIT Brokerage was founded in 2019 and operates under a parent financial group focused on connecting traditional finance with digital assets.

As of the fourth quarter of 2025, the group reported more than $6 billion in total assets under custody and management. It also reported average monthly trading volume of more than $7 billion.

The brokerage says it offers commission-free trading across more than 10,000 U.S.-listed equities and ETF products, with low transaction fees. Its funding options include stablecoins such as USDT and USDC, along with U.S. dollar bank transfers.

The addition of short selling broadens the platform’s role in U.S. equity trading. It gives traders more tools to act on falling prices, hedge existing exposure, and respond to market swings. At the same time, the service introduces risks that are different from standard stock buying, including borrow costs, forced buy-ins, margin calls, and the possibility of losses that exceed the original trade amount.

For BIT Brokerage, the rollout marks another step in its attempt to combine digital funding rails with traditional market access. For traders, the main change is straightforward: the platform no longer only supports buying U.S. shares or using margin to increase long exposure. It now also supports bearish equity trades, with options expected to follow later.