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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 5:58 pm to TigerDeBaiter
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.
1
Posted on 1/26/16 at 6:52 pm to makersmark1
I just have one thing to add. You are borrowing the shares in order to sell them short. It's happened several times to me that I placed the order and was told that there were no available shares to borrow. Obviously this is more of a problem with more thinly traded stocks.
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