Can someone explain shorting to me so a dummie can understand it? What exactly is it and how do you place a transaction to short a stock? What cash get's tied up in your account when you short?
Hi Jerry I am not a shorter expert (did same in the past) now I have difficulty with Etrade to borrow stocks to short.. not to confuse you (my English doesn't reach a "teacher" level lol see if these 2 links help https://www.tradeking.com/education/stocks/short-selling-explained good luck
OK boss I thought to help Jerry ... now it si better btw Jerry I got a nice one in Italian if you so like it
yes there is few of those for short but to open an account from here (non USA residence) is very difficult .. so I stay with Etrade they find me stocks to borrow but withing 15 minutes!!!!! by then i stime to cover let alone selling
Thanks much for the link. I understand the concept of shorting now and no doubt I have not got the appetite for the risk.
pardon my ignorance- Is short selling a stock the same as buying a stock at a limit or market price then selling it the next day? Or do you have to specify that type of thing?
No offense intended here fthree but did you listen to the embedded video at the top of this thread? Scroll to the top of this thread and just below the question I asked is a post by Ciao with and embedded video. Play that and see if it answers your question.
I did listen to the video just am confused by how they work. I use Robinhood Instant now and hope I don't run into any margin/short selling issues without my knowing/after the fact. Having the ability to trade so frequently
As you've probably heard in the video, your broker needs your written permission in order to lend your stock to someone. So in case you didn't give him one, and if he's a respectable broker, you will see no issues with your shares.
When a person signs up with a broker, in all the red tape, the stocks are held in street name. You probably submitted permission for the broker to allow borrowing of your shares when you opened your account. Your shares are held in common with the broker so that he/she can make quick decisions on what you want to buy or sell. If you put your shares in certificate form, it cannot be used, but it will be a mess trying to cash the certificates in, so most people just leave their stocks with the broker. It's up to you! ~Sis~
Quite a grain of salt you've added there. Think it's still possible for a broker to borrow shares without his direct approval?
