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re: I have a really stupid and dumb (or both) question about shorting a stock...
Posted on 1/26/16 at 10:41 am to The Egg
Posted on 1/26/16 at 10:41 am to The Egg
You are borrowing shares in hope to buy back at a later date (at a lower price) to turn a profit.
That's the simplest explanation.
To do so, you "sell short" a position, in stead of "buying long".
Have a stop.
That's the simplest explanation.
To do so, you "sell short" a position, in stead of "buying long".
Have a stop.
1
Posted on 1/26/16 at 5:58 pm to TigerDeBaiter
Basically, instead of buying today and (hopefully) selling for a profit later, you sell shares today and hope they go down, then buy shares to close the position.
So sell ABC shares (Short - you do not own any shares)
Then buy to cover your short position in ABC later.
So sell ABC shares (Short - you do not own any shares)
Then buy to cover your short position in ABC later.
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