Current Events > What is short selling stocks

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What is that
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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
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if you're a 5'11'' or shorter stock broker

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
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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
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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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BignutzisBack posted...

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

Doesn't necessarily have to be a s***ty company. A couple years ago, Google's stock went from 770 to about 680 within a month.
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BignutzisBack posted...

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?

No you'd buy them from other shareholders betting the stock will continue to rise. If the stock rises, they keep your money and their shares which are now worth more because the stock increased in price.
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Alternatively, you can buy a call. Which is the opposite of a put.

For example, a companies earnings are fixing to be released in 10 minutes. You think the stock is going to go up big. But you don't want to risk buying the stock outright, incase it doesn't and you're stuck with a 1,000 dollar loss within minutes.

So, you decide to buy a call for $500 instead. That's the most you could possibly lose, but you will also earn less if the stock performs well because you initially spent $500 for the rights to purchase the stock at a given price.
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