For questions related to the trading practice of short-selling, which involves selling securities or financial instruments that one doesn't own with the intention of repurchasing them at a lower price.

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3
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1answer
67 views

When short selling a dividend stock, what is the earliest date to cover and break even

Let's assume the ex-dividend date is 5/5/2016. 1) What is the latest date that I can cover before I'm on the hook for the dividend to begin with? 2) If I'm already on the hook for the dividend, ...
3
votes
3answers
106 views

question about short selling stocks

I'm trying to wrap my head around short selling. Online the explanations i found talk about borrowing a stock from your broker, selling it at a high price then waiting for the stock to drop in price ...
0
votes
2answers
70 views

How does the person lending shares to the short selller protect themselves if the short sellers are correct?

I'm curious how the person lending shares protects themselves from the downside if the short sellers are correct. Are they actually loaning shares or is it like the banks, loaning out more money ...
0
votes
2answers
53 views

How is it possible to go short using both sell stop-loss and stop-limit?

I want to buy shares in a company with a stipulation that the shares should be sold at an upper limit and at a lower limit (below original buy price). I.e. A stop-loss sell order in conjunction with a ...
0
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1answer
47 views

Sale after accepting an exchange offer - is this a short sale?

Let's say I own a stock for which there is an exchnage offer going on and I decide to accept the offer. In line with the terms of the offer, I will have to deliver the shares in a couple of weeks ...
0
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2answers
81 views

How can I find out who the major short sellers are in a stock?

I'm interested in a stock that currently has a short interest of 40%. Which strikes me as huge, and unjustified in this case. Which, in turn, makes me wonder what I'm missing that all those short ...
2
votes
2answers
88 views

Hedging against an acquisition of a stock

Let's say I have done research and have a view that a public company's stock will go down due to worsening fundamentals. So normally then, one can express that view by shorting the stock. However, ...
1
vote
2answers
58 views

How does the spread on an orderbook affect shorting?

Say I wanted to short ABC Company because I believe the stock price will go down 7% or more. The ask price is $6 and the bid price is $5. Volume is 4-5 Million shares. I decide to short $2000 dollars ...
33
votes
6answers
9k views

Can a CEO short his own company?

I'm just curious, it seems a CEO could make a lot of money by shorting a huge amount of shares on his company through a third party and then purposefully tanking the company before being fired. Surely ...
0
votes
1answer
162 views

The Big Short - shorting vs CDS

I am wondering, why the main protagonists of the movie "The Big Short" bought CDS, which were actually custom made for them and quite expensive. Why they couldn't / didn't speculate on decline of ...
2
votes
2answers
45 views

Calculation for Hypothetical Short Position

I'm trying to calculate the gain on a short position. I think I have the correct calculation, I just want to make sure I am correct. Here's the data: 1. Entered position with stock price at $28.07. ...
-1
votes
2answers
198 views

Can I donate short-stock to charity?

I have a short position that I have a significant profit on. Is it possible to donate this to charity the same way I might donate "appreciated stock", so as to avoid the short-term capital gains?
1
vote
1answer
104 views

Can I use my long position stocks as margin for my short sold stocks?

Let's say I am going to use short selling as a way of hedging. For example, I will buy $100 of GOOG stock and short sell $100 PNQI. Let's say my broker wants 200% margin on short sells (100% my own ...
5
votes
4answers
189 views

Does bull/bear market actually make a difference?

This may be an extremely naive question, but it is often discussed on the news, here and in person (at least in financial circles) that it is easy to make money in a bull market, and harder to make ...
8
votes
2answers
485 views

What is the best way to short the San Francisco real estate market?

Best as in: 1. Liquid 2. Minimum borrowing costs
0
votes
1answer
162 views

Going long vs short, mechanisms involved

I am having a bit of an issue with regards to understanding a shortening position. If for instance a currency pair, such as the USDRUB which is trading around 70 RUB/USD right now, or 0.01428(=1/70) ...
4
votes
1answer
202 views

If a stock is sold but the purchase was canceled by the exchange, will it be considered a short-sale?

This question is asked as a follow-up to the question below; How can this stock have an intra-day range of more than 90% on 24Aug2015? BKCC had a 90% price fluctuation on 24Aug2015 and some buy ...
3
votes
1answer
104 views

Is there a time limit to cover an open short position? [duplicate]

Let's say there exists a stock X that I believe will soon embark on a general downward trend. I am interested in shorting X and decide to sell some quantity of X. I see my short position as being a ...
0
votes
1answer
53 views

Is there a way to short the general education market?

Or in part to short companies involved in supporting the current state of the education market? (book sellers, equipment vendors, universities etc..)
0
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2answers
410 views

Shorting the Shenzen or ChiNext Index

is there any possibility to short the Shenzhen or ChiNext Index as an individual Investor? It seems as there are no options but two ETFs, namely the CSOP SZSE CHINEXT ETF-HKD and the ChinaAMC ...
0
votes
1answer
78 views

Does it make sense to add short positions to a diversified portfolio?

Does it make sense for most portfolios to have some short position? Is there a general rule (maybe a minimum of 10% should be hedged by a short position for high growth portfolios if you have a ...
1
vote
1answer
268 views

What does it mean to “settle” a short interest trade?

I am trying to understand what exactly happens on "settlement date" as it pertains to short interest in a stock. A similar question was asked here. It refers to the nasdaq.com definition here (and ...
1
vote
2answers
723 views

How can one short German bonds?

Does anybody know what is the best way to short German bonds?
1
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1answer
48 views

When do I need to return short stock to the lender

Borrowing stock to short is like taking out a loan. You pay back the principal upon maturity plus interest. Interest in this case refers to short stock fees and dividends. So, what is the equivalent ...
2
votes
3answers
159 views

Why don't forced buy-ins of short sold stock happen much more frequently?

When you short sell a stock, you are borrowing the stock from a lender, and the lender always has a right to say that they need their shares back, which might result in a forced buy-in by your broker. ...
-1
votes
1answer
47 views

What margin is required to initiate and maintain a short sale

If I short 100 shares of a stock trading at 20$, what is my initial margin and my maintenance margin that I need to maintain with my broker? I have a REG T margin account.
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votes
1answer
54 views

Do I retain the dividend if I buy back a short stock before the ex dividend date

Let us say I am short a stock ABC. I buy the stock back on the ex dividend date. Now, when I buy the stock, I have to return it to the original lender that loaned me the stock,correct? If that is the ...
1
vote
1answer
111 views

How does shorting ETFs work? What are the costs and tax implications?

If I short an ETF stock, how does it work from the cost and tax perspective? Do I get charged ETF expense ratio? (does not make sense to me) If underlying stocks issue dividends, am I charged them? ...
0
votes
1answer
153 views

What happens when short interest exceeds outstanding shares

Let us say there are 100 outstanding shares of company X held by investor A. Investor B comes in, borrows these 100 shares and short sells them to investor C. Which means, outstanding shares=100, ...
1
vote
2answers
86 views

Exercise a put option when shorting is not possible

Sometimes when I want to short a stock, my broker says that no shares are available for borrowing. In this situation, can I buy a put and exercise it immediately and end up with a short position? in ...
0
votes
2answers
291 views

Is it easier for brokers to find shares to short in premarket?

Recently I have had trouble finding the shares to short for positions I want to take at the start of open hours. Is it easier for a broker to find the shares in premarket when the stock is likely to ...
2
votes
2answers
152 views

Why buying an inverse ETF does not give same results as shorting the ETF

I was reading on the pros and cons of shorting an ETF vs buying an inverse ETF on yahoo I do not understnad this explanation why over hte logner term, shorting is not equivalent to buying an inverse ...
3
votes
2answers
2k views

Shorting Obvious Pump and Dump Penny Stocks

Obviously there is a lot of risk involved, but I routinely see penny stocks (OTC) climb to unreasonably high levels of growth over very short periods of time (1-3 days), sometimes up to 9000% growth. ...
2
votes
2answers
170 views

What kind of symbol can be shorted?

I am new to sell short concept. but I'm interested because I think some stocks may go weak in the future. I am using Firstrade but when I try to sell short some stock, it told me This symbol cannot ...
3
votes
1answer
49 views

Short position with bullish outlook

I am just starting to learn about options and about puts and calls. Traditionally, I assumed that being short on a position means having a bearish outlook to the market. However, when you are an ...
2
votes
4answers
135 views

Shorting versus selling to hedge risk

If you own 10K shares of stock XXX and you want to hedge your investment, isn't shorting some of your XXX identical to simply selling some of your XXX? Doesn't either approach reduce your risk in the ...
0
votes
2answers
107 views

Where can I find information on the percentage of volume is contributed by shorts?

Is it possible to get the information as to what percentage of the average daily volume of a stock or ETF is due to short sellers? This can mean either people selling short or buying back to cover ...
7
votes
1answer
2k views

How to bet against the London housing market?

A lot of people are talking about a property bubble in London and I was wondering: how could you short the property market and bet on a crash? Is there any obvious way? Basically, how could someone ...
2
votes
2answers
590 views

How to calculate how far a shorted stock's price can rise before broker issues a margin call?

If I short AAPL at 500$, how much can the stock rise before I get a margin call? Does it depend on how much Cash/Equity in other stocks I hold in my margin account? I just thought that if margin ...
2
votes
1answer
275 views

Does the uptick rule apply to all stocks/ETFs and other securities, or only specific ones?

Does the uptick rule on U.S. securities apply universally across all stocks, all bonds, all futures and all options? Or is it limited to certain category of securities/instruments? Is there a ...
5
votes
1answer
544 views

What happens if a company you hold short merges with another company?

I know how mergers (typically) work when you're long a company, you simply get shares in the merged company equal to your previous market value. But what happens if you hold a short position? The ...
1
vote
1answer
1k views

What does it mean when the broker does not have enough shares to short?

I recently opened a margin account at Questrade with 1000 dollars to see if I can learn anything about margin trading. Today, I'm trying to short sell 2 shares of XLU at a $40 limit price and it ...
8
votes
2answers
2k views

What to do if a company goes bankrupt after I short the stock

If I short a stock and then the company goes bankrupt, what obligation do I have to fulfill to my broker? I can no longer buy the stock back because the stock (i.e. the company) no longer exists, so ...
3
votes
1answer
365 views

Can I short a stock in UK using a shares ISA?

If not please advise on other straight forward method (hoping I don't have to open a complicated account for this). Thanks
0
votes
1answer
182 views

Is naked short selling illegal

From the wiki article on naked short selling It is not clear whether this practice is illegal ,or only limited to hedge funds and institutions. I say this because at least my discount brokerage ...
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votes
3answers
107 views

Who gets the margin call when a bear ETF goes down

When I short the SPY, if it goes up, then I get a margin call based on broker's margin requirements. (Not sure if margin requirements are specified by SEC or individual broker, but that is another ...
2
votes
3answers
536 views

What do brokers do with bad stock?

I'm new to financial markets and how they work is still fuzzy, so bear with me. This question actually has multiple questions :( ... and a bit of a story. I was watching a YouTube video on the ...
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vote
3answers
642 views

Short Selling Specific to India

I'm trying to short sell for the first time and when I asked my broker he says that only Intraday short selling is allowed.That really didn't make any sense as the articles I read said I can short ...
5
votes
2answers
3k views

Can you short a stock before the ex-div. date to make a profit?

If the price of a share automatically declines the same amount as the dividend on the ex-div. date why don't people short the stock right before the ex-date and then when the share price drops ...
0
votes
1answer
603 views

What would stop someone from taking advantage of wide bid-offer spreads in extended hours trading via short selling?

I understand that the less volume occurring in a security, the less liquidity (the wider the bid-offer spread). So my question is, in pre-market and after-hours trading, when bid-offer can widen ...