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extracta1

652 Posts.

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10/01/18

11:42

Post #: 30187949
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Originally posted by gungadin ↑

Shorting is a normal part of the market games, and you will see that a lot of companies are shorted. Just look at the %/nos of shorted shares as some sort of guidance.

Remember the market is forward looking, and will factor in various things, some real and some imaginary.

When you want to short a stock, your broker will lend you the shares (for a fee, and probably lend you her/ his advice for an additional small fee, and then offer to correct any short positions which did not "eventuate", for a fee) , either from it's own inventory or one of it's partners. Once you borrow the shares from your broker you can sell them at the market price and be compensated if the stock falls in value. Alternatively you lose. The broker of course wins on you placing shorts or longs (clips the ticket), .... but you may win or lose.

IGO is perennially shorted to a large degree, but if you look at the short positions as % of shares on issue/traded inthe resource business, the winners are Syrah, IGO, Rio, Galaxy, DCN, ...etc

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Quite correct,, a lot of shorting gets done through CFD's as well,,, but the brokerage still needs to hold the share somehow.

Interesting that you mention Galaxy,, it is one of my major holdings and IMO has a great future in the Lithium space.. Galaxy was strongly shorted for quite a long time, but in the end the shorters had their backsides badly burnt.

I have tried both day trading and shorting in the past... But unfortunately I do not have the skills to be successful in either of these pursuits.

BOE Price at posting: 4.9¢ Sentiment: None Disclosure: Not Held
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