What is short selling?
An example:
A stock is currently 10 yuan per share, and short sellers only have 2000 yuan in cash. The short seller estimated that the stock would fall recently, so he borrowed 100000 shares from the securities company and sold them at 10 yuan per share, so the short seller had 1 million and 2000 yuan in his hands. Two days later, the stock fell to 8.5 yuan per share, and the short sellers bought 100000 shares. The short sellers spent 850000 yuan and the cash in their hands was 1502000. Then the short sellers will return the 100000 shares to the securities company. This completes a short operation, and the short seller made 150000 in this operation.
Just take notes☺️
A stock is currently 10 yuan per share, and short sellers only have 2000 yuan in cash. The short seller estimated that the stock would fall recently, so he borrowed 100000 shares from the securities company and sold them at 10 yuan per share, so the short seller had 1 million and 2000 yuan in his hands. Two days later, the stock fell to 8.5 yuan per share, and the short sellers bought 100000 shares. The short sellers spent 850000 yuan and the cash in their hands was 1502000. Then the short sellers will return the 100000 shares to the securities company. This completes a short operation, and the short seller made 150000 in this operation.
Just take notes☺️
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Buffalo : Thank you for the explanation on short selling
FALCON2000 : Good explanation
warrior-sailormoon : Thank you
Mike Hoi : with only 2000 can't short so much right? they won't give you the shares with so low cash in account
whqqqOP Buffalo: you're welcome
whqqqOP warrior-sailormoon:
whqqqOP FALCON2000:
warrior-sailormoon :
