how can i sell short?
2007-09-30 03:55:49 · 4 answers · asked by ANNADA B 1 in Business & Finance ➔ Investing
You should not be selling short if you have to ask how. Stocks have unlimited potential to go up, meaning you have unlimited risk. Being a margin account, it also means that you could have to add more cash to your account if the stock you sold short goes up, or the brokerage will quickly liquidate your portfolio. A safer way to sell short is to buy Put options. Options are risky themselves, but at least you limit your risk.
2007-09-30 08:58:23 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You need to have at least $10,000 in a brokerage account. The account must be a margin account. All the major brokerages permit short selling. If you fall below $10,000 they may close your positions so you really want at least $20,000 first.
When the account is funded and margin trading is approved, simply enter a order to sell short. It will explicitly say this in the order. Not all shares can be sold short since there must be available shares to borrow in the first place.
2007-09-30 14:18:19 · answer #2 · answered by OPM 7 · 0⤊ 0⤋
Easy just setup a account with a broker ( I use scottrade) and you just put in a sell order instead of a buy. I think you have to have a margin account to so it though.
2007-09-30 11:03:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Do you already have a brokerage account with at least $2,000.00 USD?
2007-09-30 14:39:51 · answer #4 · answered by Anonymous · 0⤊ 2⤋