What is called when betting against a stock in the UK? (I think they are called "put options" in the USA)

Answer 1

Here is the definition of a put option
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy shares.

A put becomes more valuable as the price of the underlying stock depreciates relative to the strike price. For example, if you have one Mar 07 Taser 10 put, you have the right to sell 100 shares of Taser at $10 until March 2007 (usually the third Friday of the month). If shares of Taser fall to $5 and you exercise the option, you can purchase 100 shares of Taser for $5 in the market and sell the shares to the option's writer for $10 each, which means you make $500 (100 x $10-$5) on the put option.

So when an individual purchases a put, they expect the underlying asset will decline in price. They would then profit by either selling the put options at a profit, or by exercising the option. If an individual writes a put contract, they are estimating the stock will not decline below the exercise price, and will not increase significantly beyond the exercise price.

As you can begin to see, options are very complex, and will take you several months or years to begin to understand them, and certainly years and invested resources and other programs to begin to profit from them. Out of the question for now.

Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price. You must have a margin account to sell short.

This is an advanced trading strategy with many unique risks and pitfalls. Novice investors are advised to avoid short sales.

Answer 2

puts, going short same thing. Its an option on that stock basically you are betting that stock will go down and if yoru right you makde money if you are wrong notonly do you lose what you invested to begin with but now you have to buy the stock at that price. (and typically those are sold in lots of 100) . Options are a tatic I do not endorse or recommend.

Answer 3

Here in the US its called 'going short'. Its where you borrow stock, sell it and then promise to return the shares at some future date. You believe the price of the share is going to go down so that when you rebuy the shares you borrowed it will cost you less. Therefore you make a profit less interest and any fee the broker charges to handle the activity.