The term "short-selling a stock gets thrown around in trading and market talk all the time, but many people don't know exactly how to go about doing it. ![image.png](https://files.steempeak.com/file/steempeak/scaredycatguide/ZNNdDQ5j-image.png) Let's run through the basic idea and an example: ## Short Selling Stock When we short sell a stock, we are essentially borrowing it as you cannot sell something you do not have. Short selling a stock is betting that the stock will go down as opposed to up. For example - if we want to short stock XYZ at $20, then we put in a sell order and have borrowed the stock upon execution of the order. If the stock sinks below $20 then we make money, if it rises above $20 then we lose money. ## Buying Vs. Selling When we buy stock, we have purchased something and the amount we purchased it for is the maximum that can be lost. A stock can go to zero, but no lower. The price you paid is what you risk. When shorting a stock the risk scenario is reversed. The most we can make is the difference between the price we shorted it and zero. Using our earlier example of XYZ at $20 - the most we can make is 20 points because a stock can only go to zero. ### No Limit On Potential Loss However, there is no cap on the amount of money you can lose when shorting a stock. This is why the strategy is considered risky and most brokerages only let account holders short stock buy meeting certain restrictions such as account minimums and having a margin account. (Note: A margin account is when the brokerage allows you to leverage your account balance to trade on borrowed funds) ### Conclusion That really is all there is too it. There are two sides to a market. Being long or being short. Know you know how both work.
post_id | 82,370,293 |
---|---|
author | scaredycatguide |
permlink | what-it-means-to-short-a-stock-or-crypto |
category | steemleo |
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pcste | 0 | 27,844,112,124 | 81% | ||
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scaredycatguide | 0 | 268,511,141,717 | 100% | ||
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anotherjoe | 0 | 9,793,049,484 | 90% | ||
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andrewawerdna | 0 | 541,653,620 | 100% | ||
shadowspub | 0 | 3,693,738,821 | 3.9% | ||
escapeamericanow | 0 | 52,037,609,418 | 90% | ||
carrinm | 0 | 401,810,831,005 | 50% | ||
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clayboyn | 0 | 21,462,786,053 | 8% | ||
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fortinbuff | 0 | 1,822,090,514 | 90% | ||
mitchelljaworski | 0 | 10,479,709,132 | 100% | ||
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builderofcastles | 0 | 19,996,902,653 | 25% | ||
steemprentice | 0 | 1,013,667,988 | 10% | ||
timm | 0 | 16,968,867,592 | 90% | ||
leongkhan | 0 | 1,915,942,824,535 | 100% | ||
ripperone | 0 | 1,078,094,222,008 | 20% | ||
shaunmza | 0 | 33,502,715,843 | 81% | ||
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alexrickard86 | 0 | 4,795,439,744 | 81% | ||
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choogirl | 0 | 5,621,615,804 | 10% | ||
msg768 | 0 | 2,525,065,893 | 5% | ||
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broncnutz | 0 | 1,452,912,473,593 | 17% | ||
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rollandthomas | 0 | 5,285,797,770 | 8% | ||
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shenanigans | 0 | 168,320,031 | 90% | ||
silveringots | 0 | 38,600,776,871 | 100% | ||
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mightypanda | 0 | 2,194,664,567 | 2.5% | ||
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steemit-united | 0 | 17,887,960,290 | 9.5% | ||
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steempope | 0 | 429,824,170 | 70% | ||
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healthdear | 0 | 17,422,273,154 | 100% | ||
teriyaki | 0 | 548,176,169 | 100% | ||
timm-caja | 0 | 44,193,011,760 | 100% | ||
swiftcash | 0 | 22,296,999,527 | 5% | ||
swiftbot | 0 | 578,040,564 | 5% | ||
su-upvote-stats | 0 | 1,038,810,125 | 9.5% | ||
sm-lvl1 | 0 | 1,504,990,957 | 81% | ||
sm-starter-beta | 0 | 865,115,445 | 81% | ||
steemtelly | 0 | 5,907,319,008 | 25.73% | ||
darhainer | 0 | 2,503,664,139 | 81% | ||
limka | 0 | 0 | 1% | ||
scripsio | 0 | 2,011,362,157,579 | 81% | ||
fn109zop | 0 | 0 | 100% | ||
kharma.scribbles | 0 | 6,540,017 | 1.95% | ||
androshchuk | 0 | 121,788,405 | 50% | ||
kryptogames | 0 | 18,504,779,277 | 3% | ||
crazydaisy | 0 | 31,780,722 | 22% | ||
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wallacepapageorg | 0 | 798,956,172 | 100% | ||
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mrbullishsail | 0 | 1,419,254,537 | 90% | ||
missmodness | 0 | 374,106,176 | 35.5% | ||
captain.palnet | 0 | 775,408,362 | 40% | ||
steem-key | 0 | 740,105,494 | 93% | ||
queenvictoria | 0 | 347,514,161 | 100% | ||
xiaoq | 0 | 339,183,455 | 50% | ||
steem.leo | 0 | 826,258,682,830 | 22% | ||
plook | 0 | 3,871,725,485 | 100% | ||
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jk6276.leo | 0 | 1,730,867,040 | 50% | ||
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leoreport | 0 | 209,774,862 | 90% | ||
mindtrap-leo | 0 | 1,894,849,561 | 100% | ||
leo.curator | 0 | 975,440,877 | 28.5% | ||
onealfa.leo | 0 | 622,729,405 | 100% | ||
cn-leo | 0 | 134,582,829 | 2% | ||
discordiant.leo | 0 | 1,341,969,165 | 100% | ||
lamico | 0 | 344,475,121 | 100% | ||
neal.leo | 0 | 947,149,469 | 50% | ||
no-advice | 0 | 672,447,272 | 100% | ||
chrono.leo | 0 | 1,527,565,657 | 100% | ||
chrono.pal | 0 | 1,517,897,261 | 100% | ||
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scaredycatcurate | 0 | 4,565,911,623 | 100% | ||
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r-leo | 0 | 546,329,347 | 100% | ||
fredkese.pal | 0 | 2,699,990,785 | 50% | ||
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johnhtims.leo | 0 | 979,958,799 | 100% | ||
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@tipu curate 1
post_id | 82,370,390 |
---|---|
author | mad-runner |
permlink | q25zwz |
category | steemleo |
json_metadata | {"users":["tipu"],"app":"steemit\/0.1"} |
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<a href="https://tipu.online/curator?mad-runner" target="_blank">Upvoted 👌</a> (Mana: 0/15 - <a href="https://steemit.com/steem/@tipu/tipu-curate-project-update-recharging-curation-mana" target="_blank">need recharge</a>?)
post_id | 82,370,404 |
---|---|
author | tipu |
permlink | re-q25zwz-20191207t230054 |
category | steemleo |
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root_title | "What it means to "Short" a Stock (or Crypto)" |
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To listen to the audio version of this article click on the play image. [![](https://s18.postimg.org/51o0kpijd/play200x46.png)](http://ec2-52-72-169-104.compute-1.amazonaws.com/scaredycatguide__what-it-means-to-short-a-stock-or-crypto.mp3) Brought to you by [@tts](https://steemit.com/tts/@tts/introduction). If you find it useful please consider upvoting this reply.
post_id | 82,370,417 |
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author | tts |
permlink | re-what-it-means-to-short-a-stock-or-crypto-20191207t230114 |
category | steemleo |
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root_title | "What it means to "Short" a Stock (or Crypto)" |
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