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Short Trading

short trading is the opposite of buying low and selling high.

good explanation here - http://www.investopedia.com/university/shortselling/shortselling1.asp

 

Can someone please enlighten me what does  "short trading " means ?

 

Thanks for the advice. It seems I need to know more and deep pocket.

 

Another way is you could borrow 'scripts' and match your shorties. Of course there'll be financial costs involved. My frank advice is don't do it, unless you're very very good at that! Cheers!!!!

 

when you short a stock, it has to buy back on the same day to square off the trade.Otherwise the stockbroker co. will buy back the stock on the thrid day for you at the price 2 bit higher on whatever price at that time at their mercy.

 

Someone once explained short trading to me once in an interesting way..

If you are buying low and selling high, and if the current price of the stock is $1.00, then the MOST you can lose is $1.00 per share because the lowest value the share the fall to is $0.00

But if you are doing shorting, and if the current price of the stock is $1.00, then there is really no limit to how much you can lose because the share price can increase to any level it can.

 

Everyone say it's very risky trading. Just would like to know how much different from normal trading (buy low sell high)? What do I need to equip myself to protect my lost as little as possible?