![]() ![]() ![]() If the value of the stock goes down, then the trader buys it back for less than the sale price, returning the stock to the broker along with the fee and keeping the rest of the money for themselves.īut, if the stock price rises, they will be forced to buy for more than the sale price, making a loss in the process. To do this, a trader borrows stock off a broker, usually for a fee, which they immediately sell - but with a clause saying that they have to buy back that stock by a certain date and return it to the broker. Known as 'shorting', it involves placing a bet against a company that means a trader makes money when the value goes down. Stocks typically benefit investors if the price goes up - they buy stock, the price increases if the company does well, then they sell it for a profit.īut there is a way to reverse that process.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |