View single post by carpetbeggar
 Posted: Sat Jan 30th, 2021 09:36 am
PM Quote Reply Full Topic

Joined: Sun Oct 21st, 2007
Location: Dangling From A Rope Of...CONFETTI!!!
Posts: 12206
Principal_Raditch wrote: WongLee wrote: Final question I promise. So now if you ask to "borrow" a stock, the person who owns the stock will automatically know that you're taking it to short it correct?
Pretty much. It's all automatic through a brokerage. If I go to Etrade, I can put an order in to short let's say.....100 shares of Facebook.  Today the stock closed at $265...So a transaction occurs online with a "seller" on the other end who electronically agrees to the transaction whereby I now borrow those shares for say a month and then basically "buy" them in a month from now officially at whatever the price is that day. I pray it's lower than $265 and the person on the other end is praying it's above $265.....Hence the analogy of Pass/Don't pass from a Craps table.
BTW this is probably the best explanation of "shorting" I've seen posted anywhere since this all began.