shorting stocks

[destiny]

which is the best broker to short stocks? thanks in advanced

 

[destiny]

im serprised no1 has replied... does such a broker not exist?

 

[TheBramble]

Destiny - I'm not certain, but I think the lack of response was due to the way you asked your question.

What do you mean 'best'?

All brokers will short stocks that can be shorted if they can be (uptick) at the time you want to short them.

What did you mean to ask?

 

[destiny]

thanks for the reply bramble,
i dont know anything about shorting stocks, i assumed very few brokers allow you to short. i have never come across an online platform that will short stocks. do you know of any online broker who will allow you to short stocks online? just like buying stock, same spread, prices etc but instead stock is sold first?

 

[TheBramble]

I think it would be more interesting to ask 'which brokers don't allow you to short stocks'.

I've only used IB and DAE. Bith of which provide this facility.

Do you currently have a broker?

 

[dilmun99]

(refers to US) To short stocks your broker borrows shares on your behalf and sells them for you. You will pay an amount in lieu of dividends on dividend dates. If you're an institutional investor you will be credited interest, but most brokers pocket it for retail. If its an illiquid stock, your broker may be unable to locate the borrow, or if they do find shares, may have to give them back at little or no notice. (i.e. close out your short by buying shares and giving them back to the lender). It's normally not possible to short shares less than $5. Shorting exposes you to theoretically unlimited risk since a long position can only go to zero, wheras a stock can double or more. The uptick rule applies to common stock, but ETF's like QQQ are exempt I believe. Generally, You should be very comfortable with the ins and outs of investing long before you think of shorting. Price patterns are also very different on the short side - a whole different world for technical analysis. The key in shorting is to have a broker with a good access to shares to borrow - as noted, IB do a good job on this, but any of the larger frims should be fine. But only short liquid stocks.

 

[Racer]

If you want to short UK shares, use CFDs, some give you direct access i.e. put orders directly onto the Level 2 order book so you can sell on the bid and buy at the ask

 

[Gary (IB Rep UK)]

Shorting Stocks

Destiny,

IB allows shorting in US, UK, German and Swiss stocks. Lists are available here:

US http://www.interactivebrokers.com/html/tradingInfo/usShortableStocks.html

UK http://www.interactivebrokers.com/html/tradingInfo/britishShortableStocks.html

D http://www.interactivebrokers.com/html/tradingInfo/germanyShortableStocks.html

CH http://www.interactivebrokers.com/html/tradingInfo/swissShortableStocks.html


If you would like further information please feel free to contact me.

 

[EK1]

Racer,

who would you recommend as a broker.

As far as I see it there are 2 sorts:

- those that have little (or no) spread and charge a commission per trade

- those that are commission free with wider spreads?

Any guidance appreciated.

EK

 

[destiny]

thank for the replies
gary - have you shorting stocks using http://www.interactivebrokers.com?

 

[destiny]

can someone please recommend me a broker to short equities using an online dealing platform besides CFD's. await a reply..

 

[theknifemac]

can someone please recommend me a broker to short equities using an online dealing platform besides CFD's. await a reply..

Destiny

As Gary has said above IB allow you to short, but you must take into account the uptick rule as Bramble pointed out. This is a SEC requirement not something imposed by the broker. Most online brokers will allow the shorting of stock, but will have a list of shortable stocks as Gary posted the IB one. This is because under certain situations a stock will not be shortable as the broker cannot borrow the stock from a long holder to sell for you. Also some stocks are on a list which is not currently shortable due to another regulation. Someone else can dig that one out for you.

Hope this helps

Stew

 

[destiny]

thaks for the reply
any other brokers besides IB

 

[theknifemac]

thaks for the reply
any other brokers besides IB

MyTrack, TrackTrade, DAE check the brokers section on here !

 

[destiny]

i mean brokers that allow you to short

 

[TheBramble]

Destiny, I think you're going round in circles on this one.

The basis/ability/criteria to short and recommended brokers has already been given.

Is it perhaps another question you need answered?

 

[mr_cassandra]

best broker for shorting

In the US I've had good luck with Brownco. I don't think theres much to look for except commission and availablitiy of shares to short.

which is the best broker to short stocks? thanks in advanced

 

[ColinRiche]

i have heard that CyberTrader is the best broker for shortable stocks available

 

[boxster332]

Interactive Brokers Is Good Too.

 

[destiny]

thanks alot for your replies,
can i short stocks online or do i have to phone? can someone explain how i can short ASC?