Hello all, I am wondering if anyone can list the ways we can all make money off of the impending downturn in the market. Things I have read about are shorts, puts, the volatility index, futures, and inverse ETFs. I am however a noob with all of this stuff. I have questions that if answered by someone who is not a noob could be helpful to all. Maybe you just want to answer one or maybe you can answer all. Thanks for any help! I have researched a bit, but I just do not grasp it.
- Can someone explain the difference between shorts and puts and give an example of how shorting a stock gains or loses you money with numbers, like if XYZ stock were worth $100 and you shorted it and it went to $50, or $150, what would happen? Do you have to have options on your account to do puts/shorts? When you short a stock, how does it look or how do you close out in your portfolio?
- Can you actually buy into the VIX? It seems you cannot. Is there another way to buy into volatility?
- With inverse ETFs, if the stocks they are inversing go down, does the ETF go up? How does an ETF manager set that up, with shorts/puts on all those stocks? Can anyone list examples of inverse ETF tickers? I think SQQQ is one?
- How do you trade futures? How is what you win or lose calculated? Does everyone have access to this on their trading platform? Are you basically betting on the market to be red or green at the end of the next day?
Thank you again for any help!
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