Why would anybody let you borrow their stock to short it? If you're right and the stock drops in value and they would want to ditch it, they can't and lose money. You're basically fucking over your broker every time you short stock and are right. How is this beneficial to them?
Because not everyone is in it for the short game. They might be holding this stock for 20 years and it'll have a long upward trend in that time.
They also charge you a fee(interest basically) to borrow their stock.
Further, if they want their stock back so they can sell it, they'll tell you to return it.
The only people that really lose are the suckers you buy and sell the stock to.
because trading would be less honest if shorting were removed
>>1239967
Is shorting even done outside of rare circumstances?
I thought most brokers would tell you to suck their cocks if you barely put any offers in
>>1239993
Shorting is done all the time.
>>1239993
mathematically it is in your best interest to hold short positions long term. Professional traders are mostly permanently short. They hedge up with expensive puts and and catch all the dips, crashes and meltdowns which are more violent then the rips, surges and melt ups.
Especially off of market tops right now.
https://www.tastytrade.com/tt/shows/mike-and-his-whiteboard/episodes/trading-strategy-covered-put-02-02-2016
>>1239978
Brokers can't tell you to "return" a stock that you shorted. You don't actually hold it. You place a short order and the broker has a system in place that marks one of the shares within their inventory as being held short in need of covering. They don't transfer the equity to your account or anything. You're just speculating with something you don't yet own. If the price goes down, you buy at the new low price and sell at the old high price where you originally shorted. Try investopedia in the future.
>>1239967
because it's not your broker's share, they are taking a share from another long holder and charging you a transaction fee. Whether you make money on it or not is not their concern, all they want is volume of transactions.
>>1240036
>mathematically it is in your best interest to hold short positions long term
is this nigga serious
Just shorting a stock is extremely risky, if the stock goes up forever, you can end up losing your house.
Just trade put options.
