Understanding Short Selling | by Wall Street Survivor | Forex
Information | Currency | Markets | Fx | Video | Assets | Lesson | Trading
What is short selling? Most people think of investing as buying a stock (or other asset) and making money when its price goes up - but it’s also possible to make a profit when a stock price goes down. This process is called short selling (or shorting). Short selling isn’t all peaches and cream. There are opportunities for high returns, but as usual, these come with high risks. The big risk here is that there is no limit to your losses. When you buy a stock, you can only lose the amount that you invested. But when you short, your losses are infinite because there is theoretically no end to how high a stock’s price can rise. Short selling isn’t for everyone. It requires a lot of time and research, and a desire for high risks and high returns. Short selling is primarily used for speculator looking to make a profit when the market goes down or investing looking to hedge their position. Learn more about about short selling with Wall Street Survivor's Understanding Advanced Techniques course: http://courses.wallstreetsurvivor.com/is/16-understanding-advanced-techniques/?courseComplete=1&courseId=924#!
Comments
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I still don't understand how you're profiting if you're buying it back. I been understanding everything related with stock trading until now, I feel stuck.
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How do you "borrow" a stock?
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"Trading Places" brought me here
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hmm . do u have a tutorial how to compute break even point?
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buy inverse index funds, it's an alternative to short selling.
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so really it's not more risky than going long because you can just place a stop loss order
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How I met your mother reference though.
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To be honest i short sell all the time but this just confuses me
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Thank you!
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i mean if you know the company will go down the next weeks, like VW or something, then its a good way to make money right?
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Three words.
George Soros.
Brexit. -
so you buy the share back so you make profit and keep a share in the company???
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thanks for this video :)
best regards from France -
This is a clear explanation. I don't get the thumbs down at all. Thanks for the video.
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Wouldn't the lender want to just sell the stock themselves ASAP knowing it's probably gonna drop in price if people are looking to borrow and sell it? It seems the lender always lose in this situation. So why do they even lend?
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what if the company of the shares you short goes bust and the shares don't exist anymore, what happens then? Thank you!
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is it just me? or is the whole idea of shortselling complete garbage. Shadiest thing ever.
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Short selling is when you sell a stock you don't own at let's say $100, and then you buy it later for $70? But you profit $30???? I don't understand this
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I apologize in advance for my ignorance, but earning money (a representation of debt) is usually related to human labor, by means of making available a product or service to others, for their benefit. What is the product or service offered by short selling, and what is the benefit to other people? Thanks!
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Best explained so far Thx