Wednesday, September 8, 2010

Short Selling:


If any investors believing any stock price will decrease, then go short.


Seller is not wont the stocks, but that is a promised to be delivered.


You will close the short by buying back the same number of shares.


If selling price is greater than the buying price then the difference is profit.


If the selling price is less than the buying price then the difference is loss.


When short sale loses when the stock price rises.

Short squeeze:

If a stock starts rise and a large number of short sellers try to cover their positions at the same time, it can quickly drive up the price even further.

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