GO
Help
All content in the ZeccoShare community is generated by its members and does not contain advice or recommendations on behalf of Zecco Holdings or Zecco Trading. More>>
Content Name: CommunityDisclaimerShortLeftNav
Preview Revision #:
Active Revision #:
Edit Content
Zecco.com » General Investing » New Investors » Difference Between Short and Sell
Last post 07-30-2008, 6:06 AM by trader_sal. 6 replies.
Previous   Next
Content Name: ForumThreadInternal
Preview Revision #:
Active Revision #:
Edit Content

  •  07-25-2008, 12:08 AM 34267

    Difference Between Short and Sell

    Reply Quote

    Hi Friends,

    I am a new investor here. I wanted to know the basic difference between a short and sell .

    Here is what i am trying to understand.

    Example: I buy a 100 stocks worth 5000$ of company XYZ. Now i  see that the stock value for this company has increased to say 7000$ . So what should i use? short or sell?

    Are there any rules to short? or sell?

    Please  advice.

    Thanks

     

     

     

     

     

  •  07-25-2008, 2:59 AM 34269 in reply to 34267

    Re: Difference Between Short and Sell

    Reply Quote

    Sell.  Short is selling what you don't own -- i.e., you borrow it from another and sell it -- which means you must, at some point, buy it back (cover) to give back what you borrowed.  Obviously, you make a profit if you buy it back for less than you sold it.  But if it goes higher...

     

  •  07-28-2008, 2:41 PM 34402 in reply to 34269

    Re: Difference Between Short and Sell

    Reply Quote
    Thanks a ton for your reply.

    I am sorry but i did not clearly understand. Can you explain me with an example please?

    Thanks
    Nilesh

  •  07-28-2008, 9:52 PM 34425 in reply to 34402

    Re: Difference Between Short and Sell

    Reply Quote
    Okay. You buy 100 shares of Google $400/share. Now the stock has moved up to $500/share and you feel like you should cash out before it dips. In this case, you simply just SELL your shares for $500/share. So basically you paid $40,000 and after you sold, you now have $50,000.

    Short selling is the opposite of buying shares. When you short a stock, you are betting that the stock will decline.

    So you see Google at $500 a share. You think the stock price is going to decline big because their search engine is losing popularity. So you SHORT the stock. If the stock declines like you predicted, you make money. So say the stock plummets to $250 a share. You now have to COVER your short position. Once you cover your position, your short position has terminated.

  •  07-28-2008, 11:17 PM 34431 in reply to 34402

    Re: Difference Between Short and Sell

    Reply Quote

    Nilesh_Raje:
    Thanks a ton for your reply.

    I am sorry but i did not clearly understand. Can you explain me with an example please?

    Thanks
    Nilesh

     

    When you buy a stock, you "Sell" it to get rid of it.

     

    When you "Short" a stock, you sell it first, then you buy it back.

  •  07-30-2008, 12:44 AM 34485 in reply to 34431

    Re: Difference Between Short and Sell

    Reply Quote
    trader_sal:

    Nilesh_Raje:
    Thanks a ton for your reply.

    I am sorry but i did not clearly understand. Can you explain me with an example please?

    Thanks
    Nilesh

     

    When you buy a stock, you "Sell" it to get rid of it.

     

    When you "Short" a stock, you sell it first, then you buy it back.



    Is there a time frame for the short and cover?

  •  07-30-2008, 6:06 AM 34490 in reply to 34485

    Re: Difference Between Short and Sell

    Reply Quote
    speedlever:
    trader_sal:

    Nilesh_Raje:
    Thanks a ton for your reply.

    I am sorry but i did not clearly understand. Can you explain me with an example please?

    Thanks
    Nilesh

     

    When you buy a stock, you "Sell" it to get rid of it.

     

    When you "Short" a stock, you sell it first, then you buy it back.



    Is there a time frame for the short and cover?


     

    No
Content Name: StandardBottom
Preview Revision #:
Active Revision #:
Edit Content
 


ZeccoShare is currently in Beta mode. In case you wish to provide feedback, please post it in the ZeccoShare Forum.

ZeccoShare provides a confined and secured environment. The information you share (e.g. profile, holdings, trades, performance) is only displayed to other Zecco members. Guest (i.e. not signed in) are not able to see any individual member information. Guests will only be able to see anonymous, aggregated community data.

Zecco members marked with a ‘Zecco Associate’ medal are employees of Zecco.com. They are not registered representatives of any broker/dealer, and are not registered with any national securities exchange. All information displayed and all posts made by these users are their personal information and opinion, and not the opinion or information of Zecco.com. Zecco.com is not a broker/dealer, has no access to material non-public information about publicly traded companies, and does not make any recommendations regarding the purchase or sale of any security.

All content in the ZeccoShare community is provided for educational and informational purposes only, does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of Zecco Holdings or its employees. Your use of the ZeccoShare Community is conditioned to your acceptance of all Disclosures and Terms of Service.
Close [X]
Content Name: CommunityDisclaimerLong
Preview Revision #:
Active Revision #:
Edit Content

Terms of Service - Privacy Policy


Zecco.com is a financial portal of Zecco Holdings, Inc., which also provides access to Zecco Trading, Inc.’s trading service. Zecco Holdings, inc. is not a securities broker/dealer. All securities and investments are offered to self-directed investors by Zecco Trading, Inc. Member FINRA /SIPC. More information is located on the disclosures page.

At Zecco Trading, you can make up to 10 free stock trades in any one month that you maintain a $2500 minimum account net equity. After that, you pay only $4.50 per stock trade. Options trades are $4.50 plus $.50 per contract. Only the first account of any account type is eligible for the Zecco Trading, Free Trading program. Any multiple accounts of the same type with the same registration are not eligible for the free trading program. Free Trading Program is only available through Zecco.com. $0 minimum to open cash and IRA accounts.

* Margin accounts require a $2,000 minimum balance for opening and trading on margin. Margin trading involves risks and is not suitable for all accounts.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.

Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please read Spread Trading Disclosure.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. A mutual fund/ETF's prospectus contains this and other information, and should be read carefully before investing.

System response and access times may vary due to market conditions, system performance, and other factors.

The content of Zecco Holdings, Inc.'s and Zecco Trading, Inc.'s websites, including research, tools and securities symbols, is for educational and informational purposes and should not be intended as a recommendation or solicitation to engage in any particular securities transaction or investment strategy. You alone are responsible for evaluating the benefits and risks associated with the use of our services or products and to decide which securities and strategies better suit your financial situation and goals, risk profile, etc. The projections regarding the probability of investment outcomes are hypothetical and not guaranteed for accuracy or completeness. They do not reflect actual investment outcomes and are not guarantees of future results. Projections and tools' calculations do not take into consideration commissions, margin interest and other costs that will impact investment outcomes. All investments involve risk. Losses may exceed the principal invested. Past performance of a security, market, or financial product does not guarantee future results. Neither Zecco Holdings, Inc. nor Zecco Trading, Inc. offers any tax, legal or financial advice.

No consideration was paid for any testimonials displayed on this website. Your experience may vary, and the testimonials are no guarantee of future performance or success. Zecco Holdings, Inc., Zecco Trading, Inc.'s and their independent providers are not liable for any errors, incompleteness, or delays, or for any actions taken in reliance upon information contained herein. By accessing our websites, you agree not to redistribute the information found therein.

Market Data Copyright © QuoteMedia. Data delayed 15 to 20 minutes unless otherwise indicated. RT = Realtime, EOD = End Of Day, PD = Previous Day. Powered by QuoteMedia. Terms of Use.

© 2006-2008 Zecco Holdings, Inc. and Zecco Trading, Inc., Member FINRA /SIPC All rights reserved.