2
votes
1answer
163 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 ...
1
vote
1answer
190 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 ...
0
votes
2answers
177 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 ...
0
votes
1answer
210 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 ...
3
votes
1answer
2k views

What is the “Short sale circuit breaker rule”?

Apparently there's a NASDAQ rule called something like short sale circuit breaker which limits how much a stock can be sold short after a certain drop in price or something like that. It really makes ...
2
votes
1answer
479 views

Is 'days to cover' a useful metric in identifying the potential for a short squeeze?

When talking about short interest, the 'Days To Cover' is the avg number of days it will take to cover the short position and bring the short interest to 0. But is this figure actually of any use? It ...
-2
votes
1answer
172 views

When shorting stock, why does buying to cover help limit a trader's loss when the stock rises?

In these investopedia articles, they are giving the impression that 'Buying to Cover' is preferable than getting a margin call: Investopedia - Buy To Cover Definition Investopedia - Short Covering ...
1
vote
2answers
320 views

How can I make a profit by selling a stock short?

This link states: Shorting (or selling short) allows professional traders to profit regardless of whether the market is moving up or down, which is why professional traders usually only care ...
10
votes
5answers
287 views

If I have all this stock just sitting there, how can I lend it out to people for short selling?

Short sellers need to borrow stock in order to short sell. I understand they typically get this stock through a broker though some sort of arrangement where they pay interest. I was wondering, how ...
7
votes
3answers
439 views

If I sell a stock that I don't have, am I required to buy it before a certain amount of time?

I'm just began playing in the stock market. I just executed a SELL, because I think the market is going down. I don't actually have any of this stock. Apparently, it's quite common strategy. I would ...
12
votes
3answers
694 views

Why is short-selling considered more “advanced” than a simple buy?

Considering the downward spiral in the market (which many are predicted will continue), I was thinking perhaps selling short would be the right strategy. But from what I can tell on my brokerage ...
5
votes
1answer
273 views

What are the risks associated with leveraged trading accounts?

What is a leveraged account and why is it mandatory on some trading platforms to operate through leverage? Also, what are the associated risks? Could I end up losing more money than I invested?
16
votes
3answers
2k views

What is the meaning of “short selling” or “going short” a stock?

Can someone please explain the meaning of 'shorting' a stock with an example?