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Strategies & Market Trends : Successful Short-Term Trading Strategies for Beginners -- Ignore unavailable to you. Want to Upgrade?


To: neverenough who wrote (67)8/15/1998 4:10:00 PM
From: TomX  Read Replies (1) | Respond to of 78
 
Another general question of shorting vs options,

Why would you want to short a stock when you can buy put options on it? Aren't options mucher safer while providing the same of potential?
I guess not all stocks have options on them which would be a reason to short them instead. This down market is providing many opportunities for short selling which is why I am interested.

On the topic of shorting, how does one actually go about doing this? Using Bell Canada stock as an example, would I call my broker and say I want to short 100 shares of Bell (trading at $27). Would then s/he deposit $2700 in my account and then I have to go and buy the stock? Are there deadlines when I have to cover my position? 1 week? 2? I know options expire every month. Thanks in advance to all those who reply. I appreciate the information.