Editing Talk:2094: Short Selling
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::::If you think short-selling shouldn't be legal, you should look into {{w|Quantitative easing}} and {{w|Fractional-reserve banking}}. -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 18:16, 5 January 2019 (UTC) | ::::If you think short-selling shouldn't be legal, you should look into {{w|Quantitative easing}} and {{w|Fractional-reserve banking}}. -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 18:16, 5 January 2019 (UTC) | ||
:::What you (and Ponytail, FWIW, given how muddled the analogy is of course) describe sounds more like selling put options than short selling. [[User:Stannius|Stannius]] ([[User talk:Stannius|talk]]) 19:10, 4 January 2019 (UTC) | :::What you (and Ponytail, FWIW, given how muddled the analogy is of course) describe sounds more like selling put options than short selling. [[User:Stannius|Stannius]] ([[User talk:Stannius|talk]]) 19:10, 4 January 2019 (UTC) | ||
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::It is not that hard to understand. Imagine you own 100 apple-shares and do not plan to sell them for the near future. You lend me these 100-shares for 2 weeks. I sell the 100 shares immediately. Now I have 2 weeks to re-buy them. If I’m lucky the price for these 100 shares will decrease somewhen during this 2 weeks. Imaging that I sold the shares for 200$ each, and could re-buy them for 170$: Then I made 30*100$=3000$. Of course you will get a fee for the borrowing. The 3000$-fee are my profit. | ::It is not that hard to understand. Imagine you own 100 apple-shares and do not plan to sell them for the near future. You lend me these 100-shares for 2 weeks. I sell the 100 shares immediately. Now I have 2 weeks to re-buy them. If I’m lucky the price for these 100 shares will decrease somewhen during this 2 weeks. Imaging that I sold the shares for 200$ each, and could re-buy them for 170$: Then I made 30*100$=3000$. Of course you will get a fee for the borrowing. The 3000$-fee are my profit. | ||
::The risk here is of course that the shares could increase in price during the 2 weeks – then I would be forced to rebuy them for more that I got AND have to pay you the fee. That’s the reason shorts are more dangerous then longs. --[[User:DaB.|DaB.]] ([[User talk:DaB.|talk]]) 17:36, 4 January 2019 (UTC) | ::The risk here is of course that the shares could increase in price during the 2 weeks – then I would be forced to rebuy them for more that I got AND have to pay you the fee. That’s the reason shorts are more dangerous then longs. --[[User:DaB.|DaB.]] ([[User talk:DaB.|talk]]) 17:36, 4 January 2019 (UTC) | ||
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What about that word "squeeze" in the title text? We need an explanation. There is a page {{w|Short_squeeze}} on Wikipedia which is surely relevant, but I don't understand it enough to explain it here. [[Special:Contributions/141.101.98.178|141.101.98.178]] 12:41, 6 January 2019 (UTC) | What about that word "squeeze" in the title text? We need an explanation. There is a page {{w|Short_squeeze}} on Wikipedia which is surely relevant, but I don't understand it enough to explain it here. [[Special:Contributions/141.101.98.178|141.101.98.178]] 12:41, 6 January 2019 (UTC) | ||
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There is an element of fighting the Witch - when a short seller is set to lose they do all they can to undermine the company. Elon vs. Short Sellers as case in point. | There is an element of fighting the Witch - when a short seller is set to lose they do all they can to undermine the company. Elon vs. Short Sellers as case in point. | ||
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