1 / 6

Understanding The Order Book & Mechanics of Short Selling in Stock Trading

Learn how brokers connect to exchanges, types of orders, and additional possibilities like sell short and more complex orders. Delve into the mechanics of short selling, borrowing shares, and managing assets and liabilities effectively.

dani
Download Presentation

Understanding The Order Book & Mechanics of Short Selling in Stock Trading

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Order Book (recap) • Ask $100.10 100 • Ask $100.05 500 • Ask $100.00 1000 • Bid $99.95 100 • Bid $99.90 50 • Bid $99.85 50

  2. How Brokers Connected to Exchanges

  3. Types of Orders (with your Broker) • Additional possibilities: • Sell short (to open) • Buy (to close) • More complex orders (stop limit)

  4. Mechanics of Short Selling • Borrow the shares • Sell them • You now have: • Asset: Cash • Liability: Shares owed

  5. Short Selling Example

More Related