How do I short a stock? Is it worth the risk?

You short a stock by establishing a margin account at a brokerage and deposit either securities or cash. Once approved and the account is established you go to order entry screen and click “sell to open” or “sell short” , enter the number of shares and click execute. The proceeds from the sale will immediately show up In your account and you are free to do with it what you want as long as you maintain the margin requirements.

When you close the position. You click “buy to close” or “Buy to cover” and click execute and the cash or buying power will be decrease immediately.

In my opinion it isn’t worth shorting. Since when is it prudent to take unlimited risk with limited reward? In addition, you have to pay the broker a fee as cost to borrow, and you have to pay interest on your margin.

Easier to just buy a put


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