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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...

Just curious. What broker do you use?

May take a bit.....LOL

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...

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.

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...

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

You still have no clue, do you?

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

You're a Wikipedia kinda guy.......LOL

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...

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...

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

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.

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.

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

I forgot SSF - Single Stock Futures

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".

Why cover? Why cover?

Drip, drip, drip.......