Questions tagged [shorting-securities]

Short selling of stock involves borrowing shares that one doesn't own with the intention of repurchasing them at a lower price. Short selling of an option involves selling an option without having an equivalent position in the underlying security.

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808 views

What is the actual reason the short sellers of GME can't just hold their positions until the price goes back to normal?

Thinking about the current situation where GME has been shorted by more than the existing float, I think I have a basic understanding of short selling as selling shares you've borrowed. I've seen a ...
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What would happen to short positions if one entity owns All the share and isn't selling? [duplicate]

Edit: The question this was closed as a "duplicate" of while related and interesting, does not ask or answer the question I'm asking. What it asks is what happens with regards to things like ...
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410 views

Why can’t I short Game Stop right now?

I attempted to put in a small short sell order for GME (since I believe the price is currently way overvalued at >$300), but it said the order could not be performed because there are no available ...
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3answers
862 views

What are the implications for GameStop as a company in the aftermath of the current share price surge?

The way that the current short-squeeze of GameStop stock works has been well covered elsewhere and the position of the two investment sides has also been quite clearly documented, but what impact is ...
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How to know if a stock is being held short

Redditors successfully attack hedge funds because they know that GME is being held short by them. But how do they know this? Where do they get this information? According to older posts, you can check ...
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How does the WallStreetBets community benefit from buying poorly performing stocks?

According to Allison Morrow, Everything you need to know about how a Reddit group blew up GameStop's stock, CNN Business, January 28, 2021. the subreddit r/wallstreetbets is buying, en masse, stocks ...
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Unable to close a short sell position in Fidelity even after buying the the stock

I performed a SHORT SELL for MRNA stock sometime back and then performed a BUY to cover the SHORT. Even after many days of buying the stock I still see the SHORT position in my Fidelity portfolio. I ...
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How do I know if a Fund engages in Short Selling

Almost all my investments are done through funds in my pension and the extent of my research into them is through the Fund fact sheets similar to the these. How can I tell if I'm investing in short ...
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Understanding Share statistics: Yahoo-finance

I am looking at share statistics of Virgin Galactic Holdings, Inc. (SPCE) taken ~10 minutes ago. Shares Outstanding 234.34M Float ...
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6answers
28k views

Can someone explain the GME short squeeze situation to a non-stock trader?

GameStop Corp. (GME) stock is over $300 at the time of this post. I understand the 10,000 foot view of the story only: That some Reddit folks are buying up shares to squeeze a short seller. But I don'...
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Can shares for sale be shorted? [closed]

If I put my shares up for sale at a limit price (and good till cancelled), can they be shorted while my order is open?
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1answer
139 views

What if there are more short positions than people willing to sell?

Let's imagine (purely hypothetical) that a hedge fund has shorted 100% or close to 100% of existing shares and has to cover them by Friday. What happens on that Friday when the hedge fund has to cover?...
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1answer
120 views

Short squeeze of long term stock holding

Does 50 % of the float being short indicate a short squeeze ? The stock also went up 25% today at the maximum , normally it is an inactive dividend play which is what I wanted. I put in a short at 10% ...
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1answer
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2 questions about puts/calls/shorting

I have 2 questions about puts/calls + shorting in my learning about options. I'm confused about how "short selling" a stock is the same/different as "writing a covered call." In ...
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If options gives you the RIGHT but not the OBLIGATION to exercise them, then why are they being forcefully exercised if they expired in the money?

Now, I know what you're thinking. If it's in the money, isn't it good that your broker automatically exercise the options for you on expiration date? Well, yes and no. If you somehow managed to miss ...
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1answer
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What happens when bear is not able to buy back the shares (to be more precise borrowed shares) he sold? [duplicate]

I came across the stock market jargons: Bull and Bear. A bit of research on bear helped me understand bear as the person who borrows shares/stocks with speculation that the price of the borrowed ...
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3answers
77 views

Sell XYZ short 20 stop 20.50

Can someone help dissect this order for me. What exactly is happening here? What do each of these pieces mean? There are 2 separate orders here, correct? First I sell the stock, then I buy it back? ...
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3answers
188 views

If I short a lot of shares, will it make the share price drop even further?

I am just a high school student and had some doubts. So the price of a share is determined by demand and supply, so suppose I short a lot of shares thus increasing the supply, it will make it look as ...
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1answer
116 views

Why doesn't the short selling restriction apply to Moderna (MRNA) stock today?

Moderna's closing price yesterday was $169.86. Today it dropped to $147.20 (-13.3%) but the short selling restriction rule didn't activate. Why? Today's SSR stocks
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1answer
108 views

Short selling stocks, Dividends and Tax

If I short sell a stock XYZ to Buyer B and I am short the stock on the ex-dividend date, I pay the lender the dividend. The dividend tax rate is 20%. Does the lender have to pay the dividend tax on ...
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3answers
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Is it possible to own more than 100% of outstanding shares?

Suppose there are 100,000 shares outstanding. I own 90,000 shares. I allow my shares to be lent to short sellers. Short sellers borrow 30,000 shares from me and they sell those shares on the market. I ...
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2answers
342 views

Are short sellers legally required to cover their positions if the company is worthless? [closed]

Consider the following hypothetical scenario: Lets say I bought up all available shares of some well-known public company (NYSE or Nasdaq listed) for $X billion dollars - before demanding all short ...
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2answers
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Why did 3SRR go down when underlying price went down?

There is some (unexpected to me) behaviour in a stock which led to me losing quite a bit of money and I would like to understand what is happening. The stock in question is GraniteShares 3x Short ...
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1answer
212 views

Can you short a stock that you are long on?

Pretty straightforward. I am up quite high on a certain stock that I believe is going to fall in the short term but continue to rise in the longer term. I would still like to attempt to make some ...
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0answers
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How is it possible to have short interest greater than 100%? [duplicate]

Currently when you look at NYSE: GME (GameStop Corp.), according to MarketWatch the company has a short interest of 136.56% since 09/15/20. How exactly is this possible? Is this just a faulty data ...
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1answer
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Negative Sell Trades — what do I need to do now?

I'm new to trading. I'm trading crude oil CFDs. I'm holding a short position of 400 barrels of crude oil at $37.50, but the price of crude oil is now $41.50. During the move from $37.50 to $41.50, my ...
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1answer
159 views

Why can't I directly short the bond market?

I am talking about directly shorting bonds (i.e. excluding derivative instruments like CDS). Why can I often short stocks and ETFs but not bonds?
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1answer
165 views

Why does short-selling treasuries require significant collateral?

In the vein of this question, I'm curious about getting a loan by selling treasuries. The issue, apparently, is that the proceeds of the short sale is held as collateral. As I understand it, however, ...
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2answers
98 views

Shorting Stocks

Could someone please instruct me as to why, through TD Ameritrade/Thinkorswim I am not allowed to short PLAY Stock (Dave and Busters)? Could someone please educate this individual. I am really wanting ...
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1answer
1k views

How does voting work when shares are lent out to short sellers?

At a stock brokerage firm, A has 1000 shares of a stock in a margin account, while B has 500 shares. The stock brokerage firm holds all these shares in street name and can lend these shares to short ...
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1answer
92 views

Is put option a good alternative to shorting HTB shares

A lot of companies I'm interested in shorting have hard to borrow shares (HTB) I often miss the trade because I can't borrow the shares to short. I don't know much about option trading but I know that ...
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3answers
1k views

How do I replicate a shorted stock and protective call option using options only?

Suppose a stock is currently at $100. I construct the following portfolio: Short-sell 100 shares at $100 Long a call option — strike price: $105 (protective call) The protective call option serves ...
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2answers
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How does stock split work in practice with short sellers?

Using Tesla as an example who announced a coming 5-1 stock split yesterday According to the press release, people that own Tesla stocks on or before Aug 21st will receive an additional 4 shares as ...
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0answers
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Can closing a short position trigger a wash sale?

I have a bit of a weird situation, and am not 100% sure how the wash sale rules should apply (in the U.S.) Lets say I have 100 shares of a mutual fund that I purchased over a year ago for $10 each, ...
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1answer
83 views

Can I use the money I obtained from shorting a stock? [duplicate]

If I were to short a stock currently valued at $100, I understand that $100 would be placed into my margin account. Can I use that $100 to purchase stocks?
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2answers
414 views

Do I earn interest when shorting stocks?

Suppose I short 100 shares of a $5 stock. My cash balance will be +$500 due to the short position. Does this $500 earn any interest? I have heard two opposing answers: The $500 earns interest, and I ...
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2answers
2k views

What are the risks of allowing my stock broker to lend out my shares to short sellers?

Some types of brokerage accounts allow the stock broker to lend my shares to short sellers (probably without needing to notify me). Do I incur any risks when I sign up for such accounts? Is there any ...
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2answers
487 views

What happens when I want to sell my shares that are currently lent to a short seller?

Suppose I own 100 shares of a company in a margin account. Suppose the brokerage firm lends my shares to a short seller. Questions: Can I sell my 100 shares while they are still on loan to the short ...
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1answer
151 views

A few questions about stock investing

(1) What happens if I buy a stock before it splits? For example, I buy 100 shares of A at $10 dollars per share a day before a 2:1 split. With T+2, delivery will be after the stock split. Does the ...
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3answers
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Can a single share of stock be shorted multiple times?

Is it possible for a single share of stock to be shorted multiple times? Concrete example: Imagine we have five people with the following motivations: Person A owns a share of company ABC and wants to ...
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1answer
480 views

Why do inverse ETFs reset daily?

I looked at some of the popular inverse ETFs such as ProShares Short S&P 500 (SH), ProShares UltraShort S&P 500 (SDS), Direxion Daily S&P 500 Bear 3X Shares (SPXS), ProShares Short Dow 30 (...
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2answers
900 views

How to short Turkey? How to get exposure to local currency-denominated debt?

After some research, I decided to open a short position on Turkish Lira (TRY), and I'm also looking to short TRY-denominated debt. To short the TRY-denominated debt, I'd need to short-sell a TRY-...
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1answer
502 views

Does short sale borrowing rate change during the term of the loan?

If I borrow shares to short, and the initial borrowing rate at the time that I open the position is 10%, will that be fixed until I close the position? i.e. if the borrowing rate increased to 20% ...
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1answer
105 views

initial margin calculation for multiple short positions

I've been trying to understand how margin requirements work for short positions (assume Reg-T US) to model for a backtesting software (I don't have direct experience with shorting, yet) I think I ...
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2answers
152 views

What happens to a short position when a company is nationalized?

The title speaks for itself. Would this be the same as shorting a company that goes bankrupt? So you basically get to keep all your money?
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1answer
91 views

limiting losses when shorting stock

First time shorting stock just want to make sure I limit my losses correctly. Say I short 100 shares of SPY and $272 and I want to get out(cover my short) if it goes above $285 would the following ...
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1answer
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Who is your counterparty when longing / shorting on leverage?

I understand the basic cases of how longing/shorting works and how two parties with opposing price predictions can make a derivative contract to settle in cash when the price of an asset goes up or ...
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1answer
145 views

What happens if I short-sell a stock and the company declares a large cash dividend?

Suppose I have shorted a stock. Further suppose that the company now declares a large extraordinary dividend. Will I have to pay the large dividend? If I understand correctly, there will be no loss ...
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2answers
1k views

Short selling banned in Italy for 3 months. Am I affected with my Short ETF investments?

I'm from Italy and I've "invested" in the following short ETF: BOOST FTSE MIB 3X SHORT DAILY ISIN: IE00B873CW36 Ticker: 3ITS.MI WisdomTree Info Sheet Used to be called Boost, now they're ...
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4answers
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Calculating relative performance of a short trade

This may seem incredibly simple, but I just can't get my head around it. Example: I make a short trade and the stock falls by 20%. During that period, the index falls by 10%. Have I made a +10% ...