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Anonymous
Anonymous asked in Business & FinanceInvesting · 2 months ago

Is short selling a tecnique used in day trading, investment or both?

Update:

And how do you short sell?

3 Answers

Relevance
  • 1 month ago

    Short selling is more of a short term thing. It's just easier and less risky to buy put options for longer term positions. 

  • Anonymous
    2 months ago

    Start with learning to google search.

    https://www.investopedia.com/articles/investing/10...

  • 2 months ago

    It is used by both.

    There is one other common use that you did not mention, which is hedging. If I buy a lrge number of put options on a stock to a market maker, it is quite likely the market maker will immediately short the stock to reduce the amount he has at risk.

    I have not made many short stock sales, but when I have I have called my broker and confirmed there are shares available to short then given him my order. I know at most brokerages, assuming you have a margin account and enough margin available, you make a short sale with a "sell to open" or a "sell short" online option.

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