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  1. TruckElectric

    Is $TSLA going to 600.00?

    Ok. Upon some reviewing on the process of short selling I was off. You borrow the shares, sell them at a high price and buy back at a lower price, hopefully, and the return the shares at a given time period and pocket the difference of prices. The broker is not responsible any gains or loses...
  2. TruckElectric

    Is $TSLA going to 600.00?

    Correct. Mr. Short owes the broker $500.00 Sorry about that. No. The broker gets his $500.00 share back plus $500.00 from Mr. Short. That is the agreement. You return the shares you borrowed. The only thing you got right is fees. That is what the margin account is for. Not sure about...
  3. TruckElectric

    Is $TSLA going to 600.00?

    That is why you are REQUIRED to have a margin account. The margin account is there to protect the broker. True enough. But most people really suck at short selling so it's kinda like the casino, the house wins usually.
  4. TruckElectric

    Is $TSLA going to 600.00?

    Short selling. You want to short Tesla: You have to have a margin account with xxx amount. Now you want to short 100 TSLA shares and your broker lends you 100 TSLA shares at 1200.00/share. Since you borrowed TSLA shares from the broker it's not yours to buy/sell. Let's say TSLA goes to $800.00...
  5. TruckElectric

    Is $TSLA going to 600.00?

    Also, a margin call is when you don't have enough funds in your margin account to cover what you owe the lender.
  6. TruckElectric

    Is $TSLA going to 600.00?

    Forgot to add. The reason for the margin account is if you have to pay that is where the funds to pay come from.
  7. TruckElectric

    Is $TSLA going to 600.00?

    You pay the price of the stock share when you borrow them. I don't call that buying the stock because you don't own the stock. Technicality there..... I call it a holders fee. When you return the stock to the lender you get the price of the stock at that moment in return. So you are either paid...
  8. TruckElectric

    Is $TSLA going to 600.00?

    Basically what you are doing when shorting is borrowing stock shares, holding them and when you return them to the lender if the price is lower than when you borrowed the stock shares you make money. If the price increases then you have to to pay the difference of price from when you borrowed to...
  9. TruckElectric

    Is $TSLA going to 600.00?

    To me it's not. But I'm not going to discount a different interpretation. Sorry if I wasn't clear.
  10. TruckElectric

    Is $TSLA going to 600.00?

    You have to have a margin account for shorting stocks. I never said that. The BORROWED stocks are still bought/sold on the open market.
  11. TruckElectric

    Is $TSLA going to 600.00?

    Never go to Wikipedia for detailed, accurate information. When you establish a short position,you BORROW shares from a broker and return them hoping the price has fallen from when you BORROWED the shares and you pocket the difference.
  12. TruckElectric

    Is $TSLA going to 600.00?

    HAHA! You can't buy/sell stock shares you don't own! Hence "borrowed". You can't short stocks you own.
  13. TruckElectric

    Is $TSLA going to 600.00?

    Options are NOT the only way to short a stock. Go to your broker and "borrow shares" of the stock, establishing a short position(on margin). When you are ready to cash in just return the "borrowed shares".
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