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What is shorting and should I buy GME

Updated: Mar 18, 2021

Shorting is a way that you can purchase a stock (short) and you profit when it does down an value and you lose when it goes up in value. Companies like TD Schwab and E trade make millions of dollars this way.



For Example:

Lets say you own GME in your account and are holding for the long term. They will borrow your shares (without you knowing) and lend them to the person who wants to short the stock. The person who is shorting also has to pay interest to TD Schwab, E Trade etc and the brokerage company typically will keep the interest as a profit source (one of the reason why they can offer free trades). So you bought GME


Tip:

Don's short a stock without putting an automatic stop loss order.




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