how do you short?

Discussion in 'Professional Trading' started by cashclay, Aug 31, 2015.

  1. S2007S

    S2007S


    When you buy the shares back you aren't going long, you are simply selling your short position out, SO if you want to short ABCD at $100 you would simply put your order in and instead of buy you would "SELL Short" the stock and when the stock falls to $95 you simply BUY to cover your position. When you buy to cover your position you are "selling" your positions....you do not own any position after "you buy them back".
     
    #11     Aug 31, 2015
  2. qxr1011

    qxr1011

    u borrowed 100 shares of XYZ and sold it upon borrowing

    now u have to return those shares,

    so when u buy 100 shares of XYZ back - you automatically returned them to the broker

    as a result u do not have any XYZ shares on your account ,and cash wise u have the difference in the price between the borrowed and the returned shares
     
    #12     Aug 31, 2015
  3. cashclay

    cashclay

    ah i see. LOL thanks fellas!
     
    #13     Aug 31, 2015
  4. qxr1011

    qxr1011

    u not borrowing money , you borrowing shares
     
    #14     Aug 31, 2015
  5. No, if you sold short 100 shares and bought back 100 shares, then your 100 shares you bought simply negates the short position, so you'd be flat.

    Of course, if you buy stock, then by default you are long the shares, and are able to sell it off again. I think perhaps you are asking if you bought MORE shares than you sold short? If that's the case, then you would be net long, since the shares you bought would offset the short position, and thus you would be "long the stock" for any excess shares.
     
    #15     Sep 1, 2015
  6. cashclay

    cashclay

    can you do that? When shorting a stock buy it back plus a 100 more so that you could be in the stock 100 plus long?
     
    #16     Sep 1, 2015
  7. Jones75

    Jones75

    Want to get indoctrinated into the world of shorts? Read this great book "The Big Short" by Micheal Lewis.
     
    #17     Sep 1, 2015