# Short Trade Let's consider a scenario where token A is currently trading at $100 on PanCakeSwap, and you choose to short it using 1000 BUSD (your capital) with 5️X leverage. This implies that you'll borrow A tokens worth 5000 BUSD (equivalent to 50 tokens). On Bubblebot, you'll obtain these tokens from the lending pool, which is established by individual liquidity providers who have deposited their A tokens into the lending pool. When you execute a short trade, you sell the 50 borrowed A tokens and receive revenue of 5000 BUSD . This revenue, combined with your initial 1000 BUSD (totaling 6000 BUSD ), serves as collateral for your short position. As you've borrowed A tokens, you are required to pay interest on your loan. Let's assume that after some time, your payable interest amounts to 10%, which means you now owe 55 A tokens to the pool. However, if the price of A-token drops to $80 per token, the value of your position will be: $6000 - 55 \* $80 = $1600 Considering that you initially invested only $1000 of your own money, your net profit will be $600 or 60%. ### Liquidation > If the price of the token you shorted rises, you can potentially incur a multiplied loss, or even lose all the capital invested in the trade position. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bubble-bot.gitbook.io/bubblebot-guide/futures-trading-bot/short-trade.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.