Question 2 – Short Sellers Debt

A lot of beginners in trading dont really understand selling short and how dangerous it is on their trading account.
Here is an example: a short seller sells 5000 shares of a stock at $1. Then after the market closes, FDA approves a company
drug. This good news will make other traders go long. In the morning the stock jumped up to $10.
This short seller has lost all his money $5000. In addition he has lost $45,000 of broker money. So he will receive a
margin call asking him for the whole money lost. Now the short seller is in debt.
To avoid this, try only short selling in virtual account and day trade only. Never hold a position over night. Anything can happen.
check my golden subscription below, it has all the details needed or just order training level 11 how to sell short a stock?
Any questions, just write back to
If you have never seen my training, please get your first training for free.
Free chart training
Free chart

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *