Can you sell short with execution only account

Z

z104

Guest
Hi ,
Can you sell short with an execution only share account.

i.e sell shares you don't own at a price but expecting the price to drop so you can buy back cheaper and pocket the difference?

or

can you only sell the amount of shares that you own.
 
You should be able to short on a standard share account
 
You have your prime broker borrow the stock on your behalf..Settle the trade.. you will obviously be liable to a fee for such a service..Call around and see who will do it for you... Or alternatively you could do some kind of extended settlement and in the mean time buy some of the stock to settle your short..
 
Thompson said:
You have your prime broker borrow the stock on your behalf..Settle the trade.. you will obviously be liable to a fee for such a service..Call around and see who will do it for you... Or alternatively you could do some kind of extended settlement and in the mean time buy some of the stock to settle your short..
Click to expand...

And you can do all this on an execution only account? Do all accounts come with a prime broker?

Why would you buy stock if you are trying to short the stock as per original question?
 
Most stockbrokers will only let you "short" if you are an established client. I have done it many times on a T+10 basis. Oftentimes for shares that I did not own and oftentimes as a covered short, where I actually had a holding of the particular share. Overall I would say that I have lost more money shorting than going long.
 
BOXtheFOX said:
Most stockbrokers will only let you "short" if you are an established client.
Click to expand...

And for very good reason - the potential downside to the trade is unlimited ie the stock can rise ad infinitum. The op should consider buying put options if he is bearish. At least with the option his maximum loss is limited to the premium paid plus outlay. A spread bet with a guaranteed stop loss would be an alternative strategy.
 
You must log in or register to reply here.
Back
Top