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Aug 23, 2019
11:11
:52
pm
Jersey hunter
All-American
It’s the brokerage firm that the client is trading with not another client
They must have the shares on account in order to accept the short trade. It’s still buy low and sell high but the order is reversed.
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Jersey hunter
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Jersey hunter
Joined
Mar 24, 2012
Last login
May 7, 2024
Total posts
7,056 (78 FO)
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Messages
Author
Time
Hey finance guys. Question about shorting a stock
NacoCoug
8/23/19 10:59pm
Instead of initiating with a buy, you initiate with a sell. Then you have to
RyneK
8/23/19 11:02pm
Feels like a hack
NacoCoug
8/23/19 11:08pm
The securities lending market is a separate market
Coog4Life
8/23/19 11:11pm
<< Deleted >>
RyneK
8/23/19 11:13pm
So does the borrower ever pay the price for the stock or just the interest on
NacoCoug
8/23/19 11:17pm
Wait, what I said doesnt make sense. Is it that they give the cash for the stock
NacoCoug
8/23/19 11:21pm
correct
Coog4Life
8/23/19 11:25pm
So shorting has come from institutions needing cash?
NacoCoug
8/23/19 11:36pm
no, these are distinct markets
Coog4Life
8/23/19 11:50pm
You mean not all that borrow are shorting?
NacoCoug
8/23/19 11:53pm
correct
Coog4Life
8/23/19 11:53pm
It’s the brokerage firm that the client is trading with not another client
Jersey hunter
8/23/19 11:11pm
Uh...no
KSwiss
8/24/19 1:26am
You borrow the shares from your broker's inventory, quick as buying long. It has
MatthiasG
8/24/19 12:00am
Easy way to understand it, you're buying low, selling high, just doing it in
MatthiasG
8/24/19 12:07am
Dumb it down more. Use a stock for the example. Like FB.
timponyloco
8/24/19 3:43am
There’s plenty of that already, knock yerself out
MatthiasG
8/24/19 5:43pm
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