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Old 03-11-2010, 11:36 AM   #5
waddy41
Rs has made me the man i am today!
 
Join Date: Apr 2004
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Instead of buying, then selling,
You sell first, then you buy

You sell `borrowed`shares, and you buy them back later.
So you sell high, hoping that the price will drop; then you buy them back at a lower price, thus making a profit.

It`s risky because your loss is limited and you`re betting against the normal upward trend of the stock market.

Why do you want to short sell?
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