best platform, page-14

MF

CFDs (Contracts for difference) do provide a meams of shorting stocks, including the banks.

You need to open an account and deal seperately with a CFD provider for this.....( although some of the broking houses do have CFDs )

I use CMC markets, but all the CFD providers have their strengths and weaknesses.

As Jantimot points out buying PUT options is another way, but the trading is thin and the market makers screw you on the premiums.
I agree with his warning, but you can make VERY good money by SELLING options.
If you think she share is going to fall...SELL a CALL option.
He is correct in saying they are open ended to losses, and the profit is limited to the premium you receive when writing them.
Options also have expiry dates so if you have a BOUGHT option you need to exercise it on or before the expiry date
So you need to know what you are doing and have very strict money management rules.

Far too big an overall topic to discuss here...but it can be done.

Not something I would recommend unless you are experienced and fully understand them.


For me CFDs are the way to go....paricularly for shorting... where you dont own or need to borrow the shares.
You sell the shares on margin.
But just like BUYING a share which you think will go up...if you are wrong and it goes down you need to have an exit stategy.
So if you SELL a share which you think will go down , but you are wrong and it goes up, you need a similar exit strategy to buy it back.



The "gearing" on CFDs means you can make or lose $s very quickly, so you need to be aware of position size/margin requirements, and trade accordingly.

EG
If you shorted 500 CBA and they rose from their current price of $51.75 to 61.75 you would be losing $5000
or making $5000 if the shares went down to $41.75.

(This on an initial outlay of $776.25, but of course you would need to keep adding to this initial amount if the position went against you, and you did not close it out.)

The advantage of CFDs is you can trade a very small number ( eg..ONE share) and therefore not do any damange while you get an understanding of the way it works.


For you interest, here is the list of CFDs that CMC Markets provide for long and short postions, and the initial margins required.


http://www.cmcmarkets.com.au/static/documents/cfd/cmc_markets_product_schedule.pdf

These margins do alter from time to time.