Hi, not really a financial advice but just more of a general question im very new to stock trading and havent invested in stocks yet and looking over material to have a good grasp of the ins and outs of trading. I think I have a basic understanding when it comes to uptrends and down trends.
Now correct me if i'm wrong here but you would want to short a stock if its going on a downtrend and for an upward trend you would want to long trade it. When it comes to shorting a stock I still can't quite grasp the concept of what shorting a stock is.
From my understanding a short is you basically take out a sorta loan and borrow a stock from your broker to a stock that is on a down trend. And if it goes down you pay back the money you owe? What I don't understand is where is the profit coming from that?
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