Short selling and margin trading
An advanced look at two genuinely risky retail techniques, short selling borrowed shares and buying stock on margin, both of which can amplify your losses well beyond a normal stock purchase.
What is short selling?
Locked until the prerequisite course is complete.
Why short selling carries unlimited risk
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How a short sale actually works, mechanically
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Short squeezes: when shorts get forced to buy
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Buying stock on margin
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Margin requirements and margin calls
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The same move, unleveraged vs. on margin
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Why margin debt is dangerous in a falling market
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Short selling as a market function, not just speculation
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Who these tools are (and aren't) for
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Naked short selling and the locate requirement
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Short-sale restrictions: the alternative uptick rule
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How short sales and margin interest are taxed
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Portfolio margin vs standard (Reg T) margin
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