11-02-2012, 09:08 AM
davej Wrote:hey, anybody have experience with short sales? haven't done one before, but FB is looking like a prime candidate given the flood of shares about to hit the market. are they easy to unload when you want, or are there some stipulations built into it?It's just like a normal stock purchase, but instead of betting that the stock is going to get better you are hoping it tanks. There's no more or less protection in the market for shorts, however you often have to have a margin account in order to do shorts with your broker, so you need to read up on those and make sure you're comfortable with the stipulations of the margin account.
Oh yeah, and prepare for some pain if the stock doesn't go in the direction you want. Like, if you really understimate the demand; read up on the phenomenom called a "short squeeze".