the price effects of selling short...

Discussion in 'Trading' started by Bickz, Dec 29, 2006.

  1. Bickz

    Bickz

    does/can selling (stocks) short affect the price of the stock? (not COVERING the short ...but SELLING short.)

    and if so ...why? being 'borrowed stock' from a broker's inventory, how could that affect the price?
     
  2. What are you talking about...

    Covering is no different than regular buying, has same effect on the market.

    Shorting is no different than selling the stock on open market- has the same effect.

    Selling is selling an buying is buying. You either adding lor taking iquidity, How you're doing it- doesn't matter. Same effect on the price.

    My opinion of course :)
     
  3. Bickz

    Bickz

    your opinion, or fact?

    i could have easily made the same assumption and never posted to begin with. but i would prefer to know for sure from someone who knows.

    thanks for your response.