ASX 0.06% $61.50 asx limited

short sellers, page-2

  1. 83 Posts.
    Gaggin what happens in the case of say CFD traders is you open the order to sell the stock then buy when the price drops the buy order closes the position. It is the reverse of buying then selling. What hedged funds do is they borrow the stock from superannuation funds for say $10 then sell which puts pressure on the price to fall. They then buy the stock back for example $8 so in effect they have made $2 per share.The stock is then given back to the funds manager for a fee of say $0.50 per share which would give the hedgers a profit of $1.50 per share.

    Hope this helps good trading

    Rob
 
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