Short selling and margin trading
An advanced look at two genuinely risky, less common retail techniques: borrowing shares to sell short in hopes of buying them back cheaper, and borrowing cash from a broker to buy more stock than you could otherwise afford, both of which amplify your losses well beyond what a normal stock purchase risks.
What is short selling?
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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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