What are short-term stocks ?

uploads/pages/d25c42e2694a4a5f5073b0124a919559.jpg

The idea of selling short stocks is to make money from stocks that go down in prices. When you short a stock, you are basically saying sell the stock they borrowed, in other words not owned by you personally.
First, you must have a margin account for the open sale of shares. Margin calculation allows the broker to extend the credit to you, based on federal instructions. You must have at least 50% of the amount included sale cash in your account. That means you have enough money available to buy stock if it's against you. Let's take a look at an example.
Is trading ZYX Co. At $ 23.00.
You'll need $ 1,150 in your account to sell 100 shares in the open. You'll get credit for $ 2,300 less commission. In general, you'll have a credit balance of $ 3450 in your account.
ZYX goes Co. To $ 18.00.
I made $ 500. Your balance is still 3450$, but the market capitalization of the stock is $ 1800 only. Thus, the value of your property rights is $ 1650 ($3450 - $ 1,800). Your paper profit at this point is $ 500.
Although you will always interest on the money borrowed from the broker, you may be able to negotiate a better price if you are a customer favorite or you have a large account. Will also be charged by the broker for any cash payments or dividends on your positions short.
If I assumed you're a normal person without any insider information, the best time to short selling in general is when the stock market overall is in a downtrend. Even the best stock goes down in Bear Markets. If you have just started, you have to take the short positions are small, and not selling stocks that rise in price at all, and use stop losses to avoid big losses in your positions short.
To learn more about various investment issues.

Choose your Rete ! - 0 Users rate this