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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350 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
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3answers
629 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
758 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 ...
8
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3answers
5k views

How come I can't sell short certain stocks? My broker says “no shares are available”

I've noticed that a many times while trying to sell short a stock I get this message. (I use Scottrade as my broker). I think these stocks are being manipulated, for example, stocks like BSFT that ...
3
votes
3answers
674 views

“Diversifying” by going Long and Short Simultaneously

I was hoping someone could take a critical eye to an idea i've had. Traditionally it's said that one should diversify across various asset classes and ultimately types to spread the risk out based on ...
6
votes
5answers
836 views

Is short selling a good hedging strategy during overzealous market conditions?

As the stock market keeps increasing, I'm more and more interested in short selling as a strategy to hedge risk and make some money. History has shown that anything that goes up, must come down. The ...
1
vote
3answers
403 views

Since many brokers disallow investors from shorting sub-$5 stocks, why don't all companies split their stock until it is sub-$5

Seems like a no-brainer? I guess if your security is not marginable, it can't be bought long on margin either, but I would also guess for most companies there are more margined shorts than margined ...
11
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3answers
3k views

Why can't I short a stock that sells for less than $5? Is there another way to “go short” on them?

I don't like satellite radio as a business and I want to short Sirius (SIRI). The stock sells for less than $5, so my broker won't let me short it. Is this a limitation of my broker? Or some SEC ...
15
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3answers
2k views

How do you short US Treasuries?

As the US government continues to issue record levels of debt, I don't think it can continue to sell that debt at 2 - 3% interest. It will face the simple supply/demand law of economics - the more ...
5
votes
1answer
287 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?
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3answers
3k 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?