Friday, March 10th, 2017

I have a question about short trading in the stock market?

I have it? Do that there was a new pol? Policy not let you do this type of short transactions in the stock market if you have any banking shares. I bought 900 shares of electronic commerce? Nico on September 17 and this new rule applied 19 September to 2 October. Since I bought? my actions before the rule applied? I can sell?

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4 Responses to “I have a question about short trading in the stock market?”
  1. Mikey C says:

    Shorting means to sell something you don’t own.

    Since you own it you may sell it.

  2. draggin78201 says:

    Short trading a stock is selling a stock that you do not already own.

    Since you’ve already purchased 900 shares of the stock, if you sell them you won’t be shorting them, unless you sell 1000 shares, then you would be short 100 shares.

    You can still sell back your 900 shares if you wish to. Hopefully at a nice profit.

  3. Shaun R says:

    Of course you can sell shares you own.

    Only short selling was banned,

    Short selling is when you borrow stocks from your broker, sell them and buy them back at a later date to give them back to your broker.

    The idea is to make money as stocks fall, sell high and then Buy low.

    But because you actually own the shares it is not short selling if you decide to sell them.

  4. beilttog says:

    Short sellling has nothing to do with selling a stock you already own. Short selling is selling a stock you don’t own hoping the stock will go down. In a manner of speaking, you’re sort of borrowing the stock (at least on paper) and if the stock goes down, you can buy it in the open market at the reduced price and you’ve earned the difference in the price. Example, you short a stock at 10 but you have a few days to provide the stock to the buyer. During this settlement period, you have to come up with the stock. If it goes down (as you hope) to let’s say $8, you buy the stock in the open market at $8 and deliver it to your original buyer and realize the $2 per share price differential. The big risk of shorting is if the stock goes up. If it goes $12 in the previous example, and you sold it for $10, you’ve got to go into the market and purchase it at $12 to cover your borrowed position and you’ll lose $2 per share (or more).

    If you already own the stock, you can always sell it and your profit or loss is the difference between your sale and purchase prices. Hope that helps.

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