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Posted by searlest on :
 
I am getting interested in selling short.I am filling out the form to up grade my account.

How many of the following should be checked if all I want to do is participate in selling short?

I have aready checked Margin

write coverd calls?
purchase options?
create spreads?
Write uncovered options?

Thanks
 
Posted by The Bigfoot on :
 
Duder...

You really want to personally know what all these terms mean rather than have someone here tell you what to choose if you are going to start playing shorts.

Here is a place to start.

http://www.investopedia.com/terms/c/coveredcall.asp

How long have you been trading? If you are new to the market shorting is not recommended. You make a mistake in buying stocks the most you can lose is what is in your account. You make a mistake shorting stocks and you can bankrupt yourself.

Fair warning.
 
Posted by $tock Weazel on :
 
Great post Bigfoot!
 
Posted by metal1 on :
 
if all you want to do is sell short, don't check any of them and do what bigfoot said and get much more educated about equities and options strategies
 
Posted by permanentjaun on :
 
quote:
Originally posted by The Bigfoot:
Duder...

You really want to personally know what all these terms mean rather than have someone here tell you what to choose if you are going to start playing shorts.

Here is a place to start.

http://www.investopedia.com/terms/c/coveredcall.asp

How long have you been trading? If you are new to the market shorting is not recommended. You make a mistake in buying stocks the most you can lose is what is in your account. You make a mistake shorting stocks and you can bankrupt yourself.

Fair warning.

Theoretically yes. Why would any good trader hold on to a loser that long though? That's very possible if you leverage yourself, but then the same quick losses are available if you use leverage in a long position too. So again I ask, why decent self-respecting trader is going to hold on to a 1:1 leveraged short position that wipes out their entire account and then more?
 


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