Short Position Buildup
Borrow shares: You borrow shares from a broker-dealer through your margin account.
Sell borrowed shares: You immediately sell these borrowed shares on the open market at the current price.
Wait for price to fall: You anticipate the price of the asset will decrease.
Buy back shares: When the price has fallen, you buy the same number of shares at the new, lower price.
Return shares: You return the purchased shares to the lender to close the position.
Profit: The difference between the higher selling price and the lower repurchase price is your profit.
Borrow shares: You borrow shares from a broker-dealer through your margin account.
Sell borrowed shares: You immediately sell these borrowed shares on the open market at the current price.
Wait for price to fall: You anticipate the price of the asset will decrease.
Buy back shares: When the price has fallen, you buy the same number of shares at the new, lower price.
Return shares: You return the purchased shares to the lender to close the position.
Profit: The difference between the higher selling price and the lower repurchase price is your profit.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.