/biz/ - Business & Finance

i like being a poor neet

>>675781

I'm a cuck

>told my friend to buy euo in jan
>'i don't feel like getting into currency speculation'

>>675781

Because I'm not confident in my understanding of Brokerages, Shorting stocks, or whither or not 500$ is enough to make a fucking difference beyond maybe 2-3 gas tank refills in profit earned per investment.

That's why.

Goddamnit.

>>675781
Why are you shorting the Euro?
>>675781

>>676960
Pic related
>>676956
The euro is a currency, not a stock, so that's probably good.

I'm not but also sort of am. European exports to America are now much more profitable to deal in. Indirectly I am shorting the Euro.

>>675781
>muh dollar
>watch the euro rise to 1.5000 in the next two years

pleb

>>677000
also, dubstrips.

but can it still drop monday? It's already at bottomlel by the end of friday

does shorting just mean buying and selling it before much time has passed? newfag here pls be gentle

>>677012

DEFINITION of 'Short Selling' The sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit

Also

Take your ass to Investopedia, it explains this shit.

>>677012
>>677019
In general "shorting" or "going short" can refer to any position where you profit from a fall in prices. The classic example is selling a security that you don't own, but there are other ways as well (e.g. buying put options).

>>677019

What this dude said
>>677024


Khan Academy has an explanation, but I personally don't like it

I'm also still learning tho.
>Piddly 500$ burning a hole in my bank account.

>>677030

I should add that Khan Academy's explanation is as such.

You've done a study, you're sure a stock is reducing in value.

It'll depreciate by say 70$ from 100$ value, and will be worth 30$

You borrow a stock, say 40 shares of 3M at 100$ a share.

Then once it's fallen, you repurchase the 40 shares, but at their SHORT position of 30$ per share.

You've returned the stocks you borrowed, but at a cost of only 30$ per, rather then 100$. And made what was left over as a take away of 70$ per stock.


I'm still unfamiliar with how forex profit is made. so take what you will from my explanation.

>>677019
>>677024
i understand the concept of short selling, but i have never bought stocks before.

if you want to short a stock, does your broker loan you the stocks which you proceed to sell and then repurchase them before/at an agreed to date and return the stocks to the broker? i just don't quite grasp how you obtain the stocks which you sell.

>>675781
Why would I short the Euro when it has already tanked? The time to short the Euro has long gone.

Shorting at these low levels is asking to be squeezed.

You suggesting I short the Euro this late is more of a contrarian indicator if anything. It says this trade has become crowded and time to get on the other side of the boat.

>>677036
>if you want to short a stock, does your broker loan you the stocks which you proceed to sell
Yes. It's actually your broker's clearing firm (some brokers are self clearing) that lends you the stock but you do it through your brokerage.

>and then repurchase them before/at an agreed to date and return the stocks to the broker
There is no date in straight short selling. You hold for as long as you want unless you get "bought in" (the client who owns the shares wants to sell so you have to buy back to give him back his stock). That only happens in smaller companies where borrowing stocks is hard. If you're shorting Apple you never have to worry about it.

In other markets, shorting works differently.

Obama hates Europe- he'll bailout Greece just to fuck Germany