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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2k 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 ...
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3k views

What does the settlement date of short interest mean?

NASDAQ lists data like this for the short interest in Walmart: Settlement Date Short Interest Avg Daily Share Volume Days To Cover 4/30/2013 27,988,175 7,442,123 ...
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395 views

Is possible to short sell stocks without using CFD?

the title is all my question :) Is possible to short sell stocks without using CFD?
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What is the long side of a short transaction called?

The way that a short sale occurs is that a person called the short seller borrows the item to be shorted from someone else and then sells it. The debt is for the item itself, so as long as it is ...
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917 views

When short negative yielding bonds, who pays the coupon

Assuming the bond was actually issued with a negative coupon, if you are short (borrowing someone else's bond to sell the bond at a lower price / higher yield) Who pays the coupon? There are at ...
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165 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, ...
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512 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?
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66 views

Closing a short position on the ex-dividend date

I understand that if I close a short position on the ex-dividend date then I owe the lender the dividend. It is taken from my account. Where does the money the company pays for the dividend on those ...
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95 views

Why did SPVXSPIT drop 95% in February?

In February 2018, SPVXSPIT (S&P 500 VIX Short Term Futures Inverse Daily Index) seems to have dropped about 95%, but after much googling, there does not seem to be any discussion about this. The ...
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224 views

Predicting a short squeeze

I have been following Tesla (TSLA) and I think there may be a short squeeze occurring. I was wondering if there are any tell tale signs, for when a short squeeze is occurring?
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129 views

How can a retail investor short the German car industry and its suppliers?

Suppose that I want to make a small investment of around 1000€ and that I want to short the German car industry and its suppliers over the long term (5-15 years). How would you do this?
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554 views

How do I short government bonds?

Perhaps it's because I've just watched The Big Short, but I'm bearish on Italian Government bonds right now. How would I go about shorting government bonds?
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568 views

It's possible to short a stock without paying interest?

Is it possible to short a stock or stock CFDs without paying any interest or swap fees for mantaining the position? Thank you.
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421 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) ...
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148 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 ...
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1answer
2k 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, ...
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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 ...
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60 views

Is it less risky to short a stock after it has been short squeezed?

I'm looking at TSLA and it has risen some 250% in the past 4 months on not much news and it seems a lot of it has been due to a short squeeze (as I understand). Since the stock has been artificially ...
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76 views

When I write an option, do I have to pay interest on it? And can I invest the proceeds?

I have two closely related questions about what happens when I write a naked option. My understanding of short-selling a stock is that as long as the short position is open, my brokerage will (or ...
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39 views

Short-Ratio, Short-Squeeze and Bullish Market

I am reading on various topics (as some may have gathered from posts). I understand the concept and implications of a short-sale pretty well. I understand how to interpret the short-ratio. Everything ...
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4answers
99 views

Call vs Puts: a short position can profit using both depending on strike price?

I'm confused about whether you want to own a call or put if you believe a stock price will go down. Most articles have described owning Puts as betting the stock will go down, and calls as betting ...
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145 views

Simultaneous long/short India

I know its not legal to have open long and short position on specific security (on two stock exchanges - NSE/BSE), but where exactly is this restriction defined (SEBI regulation? where can I find it?) ...
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175 views

Shorting Stocks And Margin Account Minimum

As I understand in order to put in a short order, one must have at least 150% of the trade value in their trading account. For example, if I were to short 200 shares of a stock which is currently ...
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216 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 ...
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How can one short German bonds?

Does anybody know what is the best way to short German bonds?
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198 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? (...
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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 says:...
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178 views

Can Indian citizens in India do short-trades in the US?

I have learned of some services that allow Indians to invest in US stocks. However, does anyone know if short-trades are possible through any of these services?
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42 views

Can you always buy to cover?

If one short sells, is there always the ability to 'buy to cover' or can there be a situation where it's not allowed by the government due to some kind of emergency, I heard in 2008 financial crisis ...
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152 views

Covering during a short squeeze

During a short squeeze: Assuming that there was one group controlling most of the free trading shares, would it be possible for this controlling group to hold out and not sell any stock to drive ...
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310 views

Can a buyout announcement cause a short squeeze above the announced takeover price?

Consider a company with heavily shorted stock. If that company puts itself up for sale and a friendly (shareholder approved) acquisition happens, can it result in a short squeeze driving the price of ...
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129 views

By what mechanism can I short a commodity without the use of futures of that commodity?

I live in the US and I work for a company that is heavily related to a particular commodity X. As such, when I began working for them, I signed a document stating that I would not purchase stock/ETFs/...
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289 views

Daily trading: recovering price change as cash, what am I missing?

If I have a tool to predict daily direction of stock price change, is it possible to daily recover price change as cash? Say, my machine learning can tell me if tomorrow GOOG will close low or high, ...
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263 views

Why can't I open multiple sell orders?

I have bought few EARS shares in Jan (300) and May(500). I am still learning stock market basics. But now, I can not sell 500 shares in profit. Whenever I tried to make trade on Fidelity; I am ...
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151 views

What happens with the “long” buyer of a stock when somebody else's short fails (that is, unlimited loss bankrupts short seller)

I am a long buyer. That is, I buy and hold and essentially never let go (my profits come from dividends). What happens when I buy a stock on the market that turned out to be somebody else's short, ...
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647 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 ...
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89 views

How does short margin works internally?

I understand the concept of being short, but I don't understand how it works, maybe is easy to explain with an example: 1) A has $1 in his account. 2) B has $1 in his account. 3) A wants to buy ...
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Do I have to pay interest on a margin short sale if I post full cash collateral?

Let's say that I have $100 in my account and I want to short sell stock A. Stock A is valued at $100, so therefore I sell one share of stock A. In order to do this, the account is a margin account. ...
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155 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 ...
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93 views

short selling time frames?

My understanding of short selling is... let's say you sell stock for $50 a share. If you purchase the stock for delivery two days later for $40 and then ship it you've effectively realized a profit ...
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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 time....
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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..)
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163 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 ...
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Closing short position

Question In the situation below, I suppose there will be another order required to cancel the short position (bottom left), in addition to the order to buy back shared when the price moved in favour, ...
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453 views

What price side am I paying when shorting stock / future

I know that question was asked here numerous times but I don't think it was ever answered clearly. When I'm short selling a security (stock/future...) I pay a bid price (with a MKT order - when I ...
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2k views

Are spot market ,regular market and ready market same in stock trading if not then what is the difference?

Are spot market ,regular market and ready market same in stock trading if not then what is the difference ? and is short selling margin trading ?
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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 ...
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372 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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Is the convertible bond arbitrage strategy really riskless if share price rises a lot?

Convertible bond arbitrage is a position when one goes short the company's stock and long the company's convertible bond. I have found many articles on the Internet stating that this is a riskless ...
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Have leveraged short ETFs lost equity?

I would like to take some hands-off, leveraged short positions of the global market, or portions thereof. There a many leveraged short ETFs. On looking at them, unsurprisingly the value of them has ...