Any ideas welcome - Must be scalable to at least 300k USD hopefully more
Anyone who comes up with a system or implementation will be rewarded.
Short sell definition w/o cheating here= Buy and then sell stock you do not own. The sale of which creates a “short fall†(short sale, in the hole) and buying it back creates net profit or loss for you.
The reasons to go for this. Again from memory: Bear market (market decline) and especially that you anticipate the stock in question will lose value.
Unfortunately, the market is closed today and I would like to get some data on CSGO, since if I am right your margin maintenance requirements for that are based on the current market price of the security.
I’ll be the first to admit I am naïve about stocks, but I’m really curious. I’ve been knocking around Investopedia for a minute.
It would probably take me 6 months to get up to speed for your buying strategy—assuming you’re worth my time :P-- and if this were legit, timing for short sale is everything. But armed with my iPhone calculator I want to play. ;-)
I suspect a full strategy would require me to not only know about short sell, but put call and etf. O.o
I was following along with these examples of strategy: http://www.investopedia.com/university/shortselling/shortselling5.asp
Naïve question: How do you interpret what is meant for individual stock when for example S&P 500 “closes at 1,950â€
-----
Some questions for you.
Can you answer for me:
1. Whether you see this as declining stock
2. Whether we are on verge of bear market
3. Whether you want to hedge a lil less that 300K
4. Given that “Two of the most useful indicators for analyzing potential short sales are short interest and the short interest ratio.†How did you arrive at CSGO as good bet.
5. Do you think the stock could lose its entire value and you gain 100%?
6. How scalable does my “naked†short-sell look from 50.000 feet and across the pond ;-) (My stock has hard-to-borrow fees, obvi)
It's not a publicly traded good or stock, if that were the case I would be able to just short it through any brokerage.
The problem is the lack of any formal large scale market that can take the other side of the trade (aka collateral good that's being shorted). As I see it now what would need to be done is to setup a exchange with sufficient enough volume on the long-side (without holding the security for the duration of the long) for me to have a steady stream of short positions.