What does it mean to go short on a stock?

Videos
Long position

With a long position, you buy a stock at a certain price and sell it at a higher price as the stock appreciates in value. The profit that you make is the difference between your buy price and the price that you sell it at.

Short position
With the short position what happens is that you’re really borrowing shares from your broker, you’re selling the shares first in the open market, then you buy those shares at a lower price and profiting from the difference there.

How do you make money by shorting?

How is the money made on the short side? In a real-world situation, let’s say you sell a camera or you list it on eBay for $125, it got sold, you got paid, now you need to deliver that camera, so that way you are at a neutral status, so you buy it from a friend for $95 because you knew that camera was available for cheap, and you made $30 in profit after you go ahead and ship that camera out.

Posted at: https://tradersfly.com/blog/what-does-it-mean-to-go-short/

? GET MY FREEBIES

Freebies

? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

? START HERE: FOR NEW TRADERS

Start Here – for New Traders

? START HERE: OPTION TRADERS

Start Here – Option Traders

? MY CHARTING TOOLS + BROKERS
https://tradersfly.com/go/tools/

? MY COMPUTER EQUIPMENT

Resources: Computer Gear

? GET THE NEWSLETTER

YouTube Newsletter Signup

? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

? STOCK TRADING COURSES

See All Our Trading Courses

? STOCK TRADING BOOKS:

Our Stock Trading Books

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/

? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

Lucid Motors IPO Valuation: The Joke’s on CCIV Shareholders
Option Volatility | Stock Options | Options Trading
Stocks making the biggest moves midday: GM, H&R Block, Citigroup and more
Op-ed: Market leadership is shifting. Here’s why investors should pay attention
Risk-Reward Ratio of Zomedica Stock Looks Unfavorable