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TopicWhat is short selling stocks
BignutzisBack
10/03/17 4:09:05 PM
#7:


Capn Circus posted...
BignutzisBack posted...
I Like Toast posted...
Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit.
Short Selling - Investopedia


Wtf how do you borrow stocks


In simple terms: You buy a put. If the stock continues to go up you lose the money or will have to pay back the money. If the stock goes down, it must go down substantially enough for you to make a profit and to off put the price of the put you paid/will pay


So I would want to borrow stocks from shitty companies and then hope they get even worse in order to make money?
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