Quote:
Originally Posted by deeLow
@ MrPrena can you help me understand this??
http://flip.it/i2Kdj
I don't understand how if the guy wanted to sell all his shares at X, but instead it surged AH. How come he ends up owing XXXXX? Shouldn't the shares he wanted to sell at X be suddenly worth XX? |
I would not even give this guy a PENNY on gofundme, even if this guy is my biological brother. Pigs gets slaughtered in the market, and it looks like he got slaughtered and now
OWE E-trade.
First let me give you the definition of SHORT
Short selling is the sale of a security that is
not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit.
Basically, he shorted 8400 shares at avg price of $2/sr.
He was bearish. That is fine, but he speculated that stock will go $1, and shorted the shares.
Then this happened...
"The stock was last trading up more than 500% at $12.56 per share. "
He short selled for $2/sr, and now he has to COVER (Cover to buy it) at $12.56.
LOST of 10.56/sr.
Short is basically, betting against the stock, and when stock goes down, you make $.
I normally do not SHORT the stock, but buy PUTS for bearish speculations.