20 Dec What is Short Selling in Day Trading?
Posted at 18:03h
in Day Trading Terminology
The first step in short selling is for a day trader to advise their broker that they wish to borrow a certain number of shares in a stock. In most situations, a broker will lend those shares. The day trader will in turn almost immediately sell those shares and then very carefully begin to monitor their screens. To be successful in short selling, the day trader must purchase back those shares at a lower price than...