Need some clarification

Last post 07-03-2008 10:25 PM by wallstreet121. 4 replies.
Page 1 of 1 (5 items)
Sort Posts: Previous Next
  • 07-02-2008 3:11 PM

    Need some clarification

    Hi everyone!

    What is the need for shorting? How does it help? What is the benefit of buying a stock high and selling it low? How exactly do you profit from such a trade?

     

    Thanks

  • 07-02-2008 10:16 PM In reply to

    Re: Need some clarification

    Its kinda like buying on the up swing but when u short a stock u are actually borring the share at now prices then selling at the later prices brokers do this 2 keep the matket shares at an active volume example u short 100 shares of a stock at now price of 10 buckas a share, the stock goes down 5 bucks and u cover it then u would make a profit of 500 bucks, but if stock goes up 2 bucks u would be down 200 etc etc etc sorry but thats the best i can explain it just research in the university in the game and it will help u GOOD LUCK

  • 07-02-2008 10:56 PM In reply to

    Re: Need some clarification

    thanks.

    I think I understand it better now.

  • 07-03-2008 3:18 PM In reply to

    Re: Need some clarification

    it's basically the equivalent of selling a stock now...and hoping to buy it back later at a lower price to replace the shares you borrowed to sell.

  • 07-03-2008 10:25 PM In reply to

    Re: Need some clarification

    Shorting really isnt any different than buying a stock long, it just reversed =)

Page 1 of 1 (5 items)