What does shorting mean(in stocks and in forex exchange)/

[mjstyle]

I was just wondering what does shoring mean in those 2 cases, can someone give me some examples. thanks

[Buyer2008]

You sell something you dont have..........
And with hope that it goes down you buy at a cheaper cost to cover your sale.
I hope that makes sence.

[mjstyle]

wouldn't that be options online in stocks?

[Buyer2008]

No options you are buying contracts to either sell or buy in the future your not buying the actual stock.

[jotuk6771]

wouldn't that be options online in stocks?

Options is another world.....    No


 When you "short" , you sell a share or a currency BEFORE you bought it and hope that the price fall to " cover " your position . If the price go down , you win the difference between the price that you sold an that you bought after. When the price go up you lose money because you must buying for "cover" at an higher price that you sold.

That's the opposite of a Trade  "long" who is the traditional trade that you hope it go up for you can sell for higher price.

Understand?  

[RoagTrader]

http://www.fool.com/FoolFAQ/FoolFAQ0033.htm

[boomer]

I was just wondering what does shoring mean in those 2 cases, can someone give me some examples. thanks

here is some info that may help explain how it works with stocks


http://forums.drpennystock.com/the-lounge/check-this-out-(-reg-sho-petition-and-info-)/