This "shorting" stuff is not understood at all by me
Can someone give a practical example
Let's say I'm a shorter - can "I" be an individual or a Broker or a Managed Fund ?
Let's say this shorter borrows 1M shares
Does "I" pay the lender a fee ? 1%, 5% ?
"I" then floods the market and sells the lot from a high of $2.75 to a low of $2.25 at say an average price of $2.50 which = $2.5M
The large selling spooks others to sell and the price reduces to $2.25
The Shorter then buys back on market 1M shares at average price of $2.40 which = $2.40M
He makes a profit of $100,000 less costs and returns the 1M borrowed shares to the lender
Is it that easy ?
Could I do that with my reasonable holding ? Who would I approach initially ?
Genuine questions and hope someone can reply in laymens terms
This "shorting" stuff is not understood at all by meCan someone...
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Mkt cap ! $440.1M | |||
| Open | High | Low | Value | Volume |
| $2.35 | $2.37 | $2.32 | $558.3K | 239.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
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| 7 | 27237 | $2.32 |
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| Price($) | Vol. | No. |
|---|---|---|
| $2.34 | 10000 | 1 |
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