The stock short-selling of? Enable to what time? Advantages and Disadvantages

The great advantage of the stock of short selling, usually to buy the stock to rise, sell if the price increases, is I mean it is the way of the standard because, you can this is coming from "sell". That is, we can derive the benefit from any stock that can be expected to be drops.


alias, also known as credit new selling. The method of short selling, as the manner of the transaction there is a trading system credit transactions and the general credit. The difference is there finely as but one of them, institutional credit transaction must do the repayment of shares in six months. The General Credit selling is as long as there are basically funds you can sell unlimited. Of course, you will need margin.


you can trust traded on the credit magnification of against it. We sell only that noticeable but there is also a credit buying.

is the maximum benefit? will be in profit and would be easy to trend overall market is down speaking. Rather, it may say that at the time aim. Or is a way that can be recommended, such as when to fall in clear material came out in the case of individual stocks. Scandal, when it came out bad data for the company, such as deterioration of performance, or will launch a short sale when it can be expected. Manner in which the basic premise will be such a method, the transaction thinking. Words is bad, but will be a chance to aim a time when the company is likely to become worse. Also it has become a aim eyes, such as when the public offering. In short, because I mean Usumaru worth of stock because inevitably the value falls.

demerits? First, the disadvantage of the short sale is that there is a possibility of reverse daily rate. This is one of the interest rate. First of all credit transactions and will to be the offset by the sell order and order the securities company to buy. However, it is not necessarily to buy and sell matches, is the minute that can not be president it will borrow the shares to lend to the Japan Securities Finance Co., Ltd. Cost at this time is reversed daily rate. This inverse daily rate terrible place of is that you do not know what will to what extent in advance. I know the day after the date of the transaction, but will it can be said that the risk of short-selling the point. Another is to say to the credit transaction in general, but can not be assumed only to damage, is located in that. Only it goes to zero in the worst if the actual thing, in the case of a short sale, when the stock price had been raised such materials out at once, there is a possibility to become a huge loss. Than it is sufficient to close out immediately? There are not may think even when that can not be settled in too much too soaring and to, it's also possible to dissolve the more margin worth a moment. However, margin trading of shares to is not even as much as say the ultra-high magnification, such as FX, the first place magnification's hard to say that there until the extreme disadvantages do it to moderate risk because there is nor a duty to do to the limit there it would be certainly.