3

the title is all my question :)
Is possible to short sell stocks without using CFD?

Enrique
  • 593
  • 1
  • 5
  • 15

1 Answers1

5

Yes. Here's how:

  • You borrow the stock from someone (paying them interest in return)
  • You sell that stock on the open market

If you want to close your position, or the person that you borrowed the stock from wants it back, you have to buy the stock back on the open market. You profit if you buy the stock back for a lower price than you sold it for. If the stock price is higher, you will incur a loss.

Note that this is done through your broker, who may or may not support (or allow) short selling.

D Stanley
  • 145,656
  • 20
  • 333
  • 404