Others   

Shorting ...

ETF...

SQQQ - nasdaq bear
FAZ - fin Bear
SPXU - S&P 500 bear...

Short ah... if market crash ... those short will huat sh

 

You are welcomed Chanbs! :)

chanbs      ( Date: 22-Mar-2017 16:25) Posted: thank you Jeremyow for the kind clarification ...  much appreciated ... :)

 

thank you Jeremyow for the kind clarification ...  much appreciated ... :) 

 

Professional short-sellers can borrow scripts of companies they want to short through their brokerage for a borrowing interest fee and then proceed to short sell the counters they have borrowed scripts. This way they are transacting directly with the market as real shares are traded.

However, there is another form of short selling using CFD which has two platforms, either a direct market access CFD-DMA or market maker CFD. In the former CFD-DMA, the short seller will trade through his CFD-DMA account and short sell the shares there which the third party CFD provider will help the short seller to engage in short selling through the provider' s end which deals with real shares transacted since it is a direct market access.

In the latter market maker CFD, the short seller is dealing with the CFD provider and not with the direct market in the sense that when he short sells, the prices quoted for him are slightly different from the actual market prices since the CFD provider is making up a market that tries to follow the actual market prices (though prices will vary slighty with a bid-offer spread). In addition, it may or may not involve real shares transacted on the end of the CFD provider due to the short selling actions of the short seller.

In all these methods of short selling, there is no expiry date for holding the shorts. One just pay interest fee for holding the shorts. But, if one just sell shares in the market without having the shares, then it is a naked short and the person needs to cover back the short in the same day or else there will be a hefty fine for naked shorts which are not covered back on the same day  

chanbs      ( Date: 22-Mar-2017 08:59) Posted: i thought shorting must be done within the same trading day here ? Else the trading house will do a buy in beyond your control ... subsequent trading days How is it i read people shorting last night and wating for a gap down today to realise their profits ?

 

i thought shorting must be done within the same trading day here ? Else the trading house will do a buy in beyond your control ... subsequent trading days

How is it i read people shorting last night and wating for a gap down today to realise their profits ?