HSX Forum

Playing & Trading Strategy

'short' is the opposite of 'buy'

Posted by: RazorHawk on Oct 10, 09:36 in response to mommy_milk_bags' post short selling

When you 'buy' a stock, you are investing hoping the price will go up.


When you 'short' a stock, you are investing hopting the price will go down.


Stock XYZ is priced at $20 and you think it will go up so you 'buy'.  It goes up to $25 and you make $5 profit per share.

Stock ABC is priced at $20 and you think it will go down so you 'short'.  It goes down to $15 and you make $5 profit per share.

 





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