Author Topic: What does shorting mean(in stocks and in forex exchange)/ (Read 3700 times)

mjstyle · « **on:** October 17, 2008, 03:04:21 PM »

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

Buyer2008 · « **Reply #1 on:** October 17, 2008, 03:08:45 PM »

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 · « **Reply #2 on:** October 17, 2008, 03:16:24 PM »

wouldn't that be options online in stocks?

Buyer2008 · « **Reply #3 on:** October 17, 2008, 03:23:52 PM »

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

jotuk6771 · « **Reply #4 on:** October 17, 2008, 03:26:10 PM »

Quote from: mjstyle on October 17, 2008, 03:16:24 PM

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?