Monday, October 19, 2009

Short Sell

Short Sell-About short sell

Short selling is when stock investors put a stock price when the broker begins with the hands of borrowing the stock throw, head turned after the whereabouts of the stock price, then lower the price to buy the stock from the broker to return to profit take the middle of the difference. Short sellers sell when short selling the stock industry, there are three main sources: one is his own agent, and the second is a trust company, its third is financial institutions. For the people who lend stock to short sellers stock lending is very beneficial, because it can not only provide customers with a comprehensive offering of services, but also to make the stock rise. Regardless of the stock lending is based on the condition that the charging of interest, or to stock price appreciation for the conditions, it is a kind of income lenders. At the same time, lenders will often take steps to protect themselves, the means are short sellers who have betrayed the price charged by the broker into account.

Two forms of short selling Short selling, including two forms:

First, the short sellers to the current market price of shares in the stock drop has added so as to make the difference profits.

Second are now reluctant to sell the delivery of its own shares and to sell the stock short selling in order to prevent the stock prices, and thus play a role in preservation. If the stock price fell when the time does, he can fill into the stock at a lower price, without considering the cost of conditions, such short-selling the benefits and offset the loss of stock ownership, so to avoid losses.


Classification of short selling===>

About short selling===>

How to buy an empty transaction==>

The principle of short selling==>