Shorting a stock enables traders to try and capitalize on declining markets. This video walks you through an example to demonstrate the basics behind short selling and how to mitigate the potential risks.
Watch video: Trading Up-Close: Short Selling Overview
Trading Up-Close: Short Selling Overview
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This video is made available for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone.
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.
Schwab does not recommend the use of technical analysis as a sole means of investment research. Past performance is no guarantee of future results.
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