Hello
How could i profit from the downside of the market with my a non marging account (cash account).
2007-03-05 03:31:07 · 5 answers · asked by Martin T 2 in Business & Finance ➔ Investing
You no longer need a margin account to sell short. There are exchange traded funds (ETFs) that you can buy that short the market. Such funds include, but are not limited to, SDS, QID, DXD, MZZ, and DOG. The first 4 of these funds are leveraged at 2 to 1 meaning that they return double the inverse of the respective averages that they represent. DOG is a more conservative way to short the DOW.
2007-03-05 03:51:08 · answer #1 · answered by AZ123 4 · 0⤊ 0⤋
You need a margin account to sell short since you will be borrowing the shares from your broker. Be warned, short selling is extremely risky. If you want to do well in a down market then put some money in companies that provide things that people will buy regardless. I.E. Drugs, Household items, and gas. Also, look at putting some into a CD. The key is to be diversified and you should survive any market conditions.
2007-03-05 11:36:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You also enter the options market although this is a complex and difficult world to paly in. You could by some put options on stocks you think will drop in price.
2007-03-05 11:48:09 · answer #3 · answered by Devdude 5 · 0⤊ 0⤋
Buying Put Options
2007-03-05 14:41:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Check out http://www.proshares.com. Proshares has exchange traded funds that are short funds. They also have "Ultra" funds which have 200% leverage. They are all exchange traded like stocks and are great hedging or speculating tools.
Good luck!!!
2007-03-06 02:01:07 · answer #5 · answered by Steve 3 · 0⤊ 0⤋