/biz/ - Business & Finance

>>17040493
YOLO spy puts until you make it.

If you don’t make it then you were never cut out to make it.

>>17040493
assuming you're an americuck:
1) have a bank account
2) open a brokerage account (I like Fidelity personally)
3) look around in the brokerage account for the "transfer money" or "fund account" button
4) enter your checking account number and routing number as they appear on your checkbook
5) wait 3-5 days for the money to move from your bank account to your brokerage account
congrats you're ready to buy stonks

>>17040539
Okay, but I'm actually asking: what fucking sites do I have to register on, etc. to be able to put anything on the roulette table, and so on.

>>17040550
I'm an europoor. Does it matter? If so, can I still roulette on US stocks?

>>17040493
as for the other part of your question, "I want into shorting":
1) dig around on your brokerage account until you can find where you can apply for options trading
2) fill out the application. Apply for the following:
>write/sell covered calls
>buy calls/puts
3) wait for approval. Hopefully you get approved.
congrats you're ready to short companies using options

>>17040550
You don't have to wait for the money land. If your broker is at all reputable, they just front you the money assuming you haven't stiffed them before.

>>17040612
So
>Fidelity
is shit? What's an alternative? Also, still looking for an answer for this: >>17040572

>>17040572
>>17040558
you'll need to find a brokerage for your own country, you can't just open a brokerage account in any country, because there are capital controls and rules about transferring/laundering money internationally, etc. etc.

nevertheless, some brokerages offer an international brokerage account that lets you buy stocks in other countries' markets. I don't know if you'll be able to find a brokerage in your country that lets you open an international brokerage account to buy US stocks, or not. You'll have to Google around and research that for yourself.

if no brokerage in your country offers an international brokerage account, you might still be able to buy stock in a few large US companies that are listed on your country's stock market via depository shares.

>>17040612
for your first time, they probably won't front you the money -- especially if you're looking to immediately open an international brokerage account so you can go short on international companies with all the exchange rate risk that comes with that

>>17040642
Thanks for your answer.
>You'll have to Google around and research that for yourself.
What do I google for?
>>>[my country] + [US stock option]?

>if no brokerage in your country offers an international brokerage account
Again, I'm complete noob, but wouldn't that be strange from the EU?

And one more thing: is "shorting" less available from another country?

>>17040676
>What do I google for?
"Belgium brokerage"

>Again, I'm complete noob, but wouldn't that be strange from the EU?
it's probably easy to buy stocks from other EU countries but harder to buy stocks from US, Mexico, Canada, Australia, China, etc. etc.

>And one more thing: is "shorting" less available from another country?
in general, shorting will be more expensive when there's less liquidity. If the only way you can trade US stocks is via low-liquidity secondary markets, then yes shorting will be less available / more expensive.

>>17040733
Again, thanks for your answer. More questions, if you don't mind. (I found a belgian-based brokerage that is available in my EU country.)

>shorting will be more expensive when there's less liquidity
In compete noob terms, this means that if I short an US stock with my yuropoor stocks through this Belgian brokerage (from my non-Belgian EU nation), I will get fucked how, exactly?

>low-liquidity secondary markets
Noob. What is?

>shorting will be less available / more expensive.
Noob. What is?

plz answer
desperate bump

>>17040493
shorting is dangerous and could literally make you get into a debt you could never afford to pay in your lifetime. When you go long you will simply lose the money you invested but when a short goes wrong it goes into a bottomless negative.

>know nothing about stocks
>wants to SHORT the market
Buddy, this is the first and only non-meme advice I will ever post, but seriously you will get rekt. Do some research before you move to options. You seriously must be underage b&.

>>17040493
shorting is dangerous and could literally make you get into a debt you could never afford to pay in your lifetime. When you go long and it goes wrong you will simply lose the money you invested but when a short goes wrong it goes into a bottomless negative that could ruin you.

>>17040930
>When you go long you will simply lose the money
What does this mean? Can I "go" short and long term when shortin? If the stock goes to shit I get the moneys, no?

>get into a debt
How? I transfer my moneys to a brokerage and it roulettes itself, no?

>when a short goes wrong it goes into a bottomless negative
How?

>>17040937
Kay, dude, but help me understand. I'm not an idiot, just a noob.

>>17040804
I used Belgium as an example, you should google your own country's name (unless you happen to live in Belgium). Of course you might find a brokerage that serves your country and Belgium also.

>In compete noob terms, this means that if I short an US stock with my yuropoor stocks through this Belgian brokerage (from my non-Belgian EU nation), I will get fucked how, exactly?
so there are two ways of shorting: literally shorting, and using options. Let's just talk about the literal kind of shorting.
When you short a stock, you are borrowing the stock from somebody else and then selling it to yet another somebody else.
You immediately get the money from selling the stock, but you're not any richer, because you still owe stock to the person you borrowed the stock from.
Additionally, you will have to pay interest to the person you borrowed the stock from, to compensate them for lending their stock to you.
The longer your short position remains open, the more interest you have to pay to the person who lent you the stock.
Hopefully, after a while the stock price has gone down, and you can close your short position by buying as much stock as you borrowed, but at a lower price. Then you give the stock back to the person you originally borrowed from.
You make a profit when you spend less money buying back the stock and paying interest for borrowing the stock than how much money you were paid when you first opened the short position by selling borrowed stock.
If you are in Europe, and if not many people are trading stock in American companies, then when you short the company, you will have to pay a higher interest rate for shorting the stock.

>low liquidity
low liquidity just means "not a lot of people trading this stock"

hope that all makes sense anon

>>17040969
https://www.optionsprofitcalculator.com/calculator/long-put.html

Here is a rough calculator of your potential gains and losses. Do not use this calculator to actually invest, you will get rekt. If you aren't an idiot as you say, you should be able to figure out why this is a bad idea.

>>17040969
>when a short goes wrong it goes into a bottomless negative. How?
[continuing on the explanation of how shorting works, from above]
if the stock price goes up after you short the stock, now you still owe the stock to the person who you borrowed from, but now to buy the stock you need to pay him back you will need to spend more money than what you received when you sold the borrowed stock. You're losing money.
Now imagine what happens if you short a company and then the stock price goes up 10x. There will not be enough money in your account to be able to buy back the stock that you owe to the person you borrowed it from. The brokerage will call you and tell you that you need to transfer more money into your account or else they are going to sue you.

>>17040984
Thank you for your effort post, anon.

>The longer your short position remains open, the more interest you have to pay to the person who lent you the stock. Hopefully, after a while the stock price has gone down, and you can close your short position by buying as much stock as you borrowed, but at a lower price. Then you give the stock back to the person you originally borrowed from.
This, in technical terms, means that if I short a burger stock that doesn't go to the shitter rather soon and drastically, I lose serious money, yes?

>If you are in Europe, and if not many people are trading stock in American companies, then when you short the company, you will have to pay a higher interest rate for shorting the stock.
How are interest rates determined? (Again, I'm not retarded, just noob.)

>>17040988
Which one of these mean in human terms "to short?"

>>17041027
Thank you, makes sense.

>>17041055
>Butterfly
>Diagonal sprd.
>Collar
>Strangle
>Naked
These are just kung fu styles.

>>17041049
>This, in technical terms, means that if I short a burger stock that doesn't go to the shitter rather soon and drastically, I lose serious money, yes?
Yes, and if the stock goes to the moon, the brokerage calls you and tells you to transfer in more money or else they'll close the position for you and sue you for the money you didn't have that was necessary to buy back the stock and close the position. Because it's hypothetically possible for a stock to go to the moon before they can close your position (e.g. after-hours), the amount of money you can lose when shorting a stock is theoretically infinite.

>How are interest rates determined? (Again, I'm not retarded, just noob.)
People who own the stock may decide to lend their stock out to people who want to short the stock. If there are only a few people who own the stock and want to lend it out, and if there are a lot of people who want to borrow the stock so they can short it, then the amount of interest that the people will demand to lend out their stock will be high. Supply & demand.

The other way to short stocks, where the potential losses are not infinite (you can't lose more money than you put in), is buying puts. You should probably try to get approved for buying puts instead of directly shorting companies. I gave instructions on how to do that in an earlier reply: >>17040594

>>17041055
In your case, I think that "short selling" is too advanced for you so you would select "long put."
>>17041102
top kek

>>17041111
Again, thanks for answering my questions.
>e.g. after-hours
What is?

>buying puts
Please learn me what is the difference between a "put" and a "short"! Thanks!

>>17041140
>long put
Define, please! What does "long" signify in this context? Like months? Years?

I just wanna thank you all for entertaining a noob like me. Seriously, thanks.

>>17041142
https://www.investopedia.com/terms/o/option.asp

Investopedia does a decent enough job, I am too sleepy to explain it in detail, apologies.
>>17041151
A long position—also known as simply long—is the buying of a stock, commodity, or currency with the expectation that it will rise in value.

>>17041174
k

>all newbtard cares about it shorting
>probably watched the big Short and thinks hes a genius

Enjoy losing your money newfag. Seen it hundreds of times before and it never gets old

>>17040550
Fidelity gang

>>17041353
Can you explain to me this supposed phenomenon?
>le newfags into shorting, and so on

>>17041168
I've seen eToro ads all across eu as a brokerage option, and they also do international

>>17041142
>what is after hours?
Stocks only trade during the daytime.
So let's say that you decide to short a drug company. Then, at 8 PM, after the stock market has closed, the drug company announces that they just discovered the cure for cancer.
Boom. The stock price is about to go up 100x. But the market is closed. When the market opens the following market. the price is already 100x and you never had any chance to close your position.

>Please learn me what is the difference between a "put" and a "short"! Thanks!
I've already described what shorting is, now you can google what a put is, it's not very complicated, it's just a piece of paper that says "I have the right to sell you 100 shares of this company at this price on this date"

>>17041168
you're welcome anon.

>>17041439
market opens the following morning,*

>>17041375
It's because everyone knows that you can buy stocks and get rich if they go up, that is old news
But now "shorting", which is betting that a company goes down and still getting rich, is new (for people not involved)
Also it was made famous through some recent movies

and here comes you who literally has no idea what a short is but wants to short international companies

You remind me of that anon asking why can't he just click "sell" on his pennystocks

>>17041111
>theoretically infinite.

How do you figure? Of course you can lose an incredible amount of money but idk about infinite.

>>17041111
>>17041649

I mean, I know what you're saying because there's an "end" price of $0 in the negative direction but limitless positive direction, but still there has to be a limit to the actual value of a share of stock.

>Berkshire Hathaway's Class A is the costliest stock in the world, with its price sitting at roughly $300,000 a share.

Last question, and I know this will trigger many of you.

Lat's say I short a stock that will not just hit close-to-zero, but will literally cease to exist. Am I guaranteed to get paid then?

noob bump

Yes

But it’s better to exit the position before the stock gets delisted because then things can get weird