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Created with Fabric.js 1.4.5 What is Short Selling? The Players The Trader The Borrower The Broker How it Goes I want to Short! $1.00 Hey! I have 1000 shares! I want to Order:Sell 1000 Shares@ $1.00 per Share I Have 1000 shares! OK! I'm going to borrowyour 1000 shares The (Unhappy) Buyer Bought 1000 Shares@ $1.00 per Sharefor $1000.00 I have anOpen Position of1000 Shares owedworth $1000.00 $0.50 I want to Cover! I want to Order:Buy back 1000 Shares@ $0.50 per Share Here's your 1000 shares back! The Seller Sold 1000 Shares@ $0.50 per Sharefor $500.00 I made $500.00 Price Falls, People Panic, Lives Shatter Why did I make money Short Selling?? Price per Share: $1.00 Step 1: Short Sell Order Position: 1000 Position: 0Balance: $1000 Position: 0Balance: $0 Position: 0Balance: $1000 Order:Short 1000 Shares@ $1.00/Share Position: 0Balance: $1000 Borrow 1000 Shares Position: 1000Balance: $1000 Position: -1000Balance: $0 Buy 1000 Shares @ $1.00/Share Position: 0Balance: $2000 Position: 1000Balance: $0 Step 2: Buy to Cover Order Position: -1000Balance: $0 Position: 0Balance: $2000 Position: 0Balance: $500 Price per Share: $0.50 Position: 1000Balance: $1500 Buy 1000 Shares to Cover @ $0.50/Share Order:Buy 1000 Shares@ $0.50/Share Position: 1000Balance: $0 Position: 01000 owed Return 1000 Shares Position: 1000 Position: 0Balance: $1500 Position: 0Balance: $0 $500 Profit http://www.redandgreen.ninja Created by Ninja0n3 Return Investment + Gains Position: 01000 owed Price Starts Falling
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