WBT 1.97% $1.99 weebit nano ltd

Below is a definition of short selling which explains what...

  1. 359 Posts.
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    Below is a definition of short selling which explains what happens and why:
    'The advantages of short selling include: Provide liquidity to the markets which may lower prices of stocks, improve bid-ask spreads and assist in price discovery. Ability to hedge an existing portfolio's long-only exposure and reduce the overall market exposure of a portfolio.'

    Also here is an explanation of what happens when it is banned:
    'Many governments over the years have taken actions to limit or regulate short selling, due to its connection with a number of stock market selloffs and other financial crises. However, outright bans have usually been repealed, as short selling is a significant part of daily market trading.'

    So I wouldn't get too hung up about it.

    As bc2 states that if you sell high and buy low or vise versa you can make money but picking the tops and bottoms is not easy.

    DYOR
 
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