Being new to the market I sort of understand what selling short means BUT don't really understand how it works exactly....
From reading the "Amazing life of Jessie Livermore" he sold short and made a massive fortune in the 30's during the crash
My questions ... how do you sell stocks you don't actually own ..
To whom do you sell.
The idea you buy PDN for $8 and hope to buy back for $7 sometimes in the future therefore pocketing the $1 difference.
The person/s you sold to ... who specifies the time frame when you have to settle ... can you take months.. years or is there a time limit ??
Sorry to be ignorant but am trying to slowly learn all aspecys of the share market.
If this has been explained before I apologize ... is there a link somwhere to read.
Finally the reason for this post ... I read many references here where people were going to go short yesterday during the 100+point sell off.
Today up 80 points ..how are you going to handle the shorts from here ??
Pressumably hoping for another big sell off...