Short Selling: Can You Profit from Falling Stocks?

December 1, 2022 Beginner
Watch to learn how short selling, or shorting, a stock allows investors to sell a stock high, buy it low, and pocket the difference.
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What is it like to trade with Schwab?

Today's Options Market Update

Stocks are trading at or near fresh all-time highs following a stellar earnings report from chipmaker Nvidia.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Past performance is no guarantee of future results.

Investing involves risks, including the loss of principal invested.

Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account. Margin trading increases your level of market risk. For more information, please refer to your account agreement and the Margin Risk Disclosure Statement.

When considering a margin loan, you should determine how the use of margin fits your own investment philosophy. Because of the risks involved, it is important that you fully understand the rules and requirements involved in trading securities on margin. Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may initiate the sale of any securities in your account, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call. For more information on margin, please visit Margin Loans at Schwab.

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