American Basic shorting / the contrary of American call options.

If betting on an increasing price for any given stock is not enough for you. Please watch the video below from Khan academy. It will explains to you how to make money out of the decreasing price of any given stock. If you bet any stock price will go down, you can borrow it, and right after sell (without really owning it !!!) it at a fair and present price. As its future value will be less important than its present value, you just need to sell the borrowed stock at a fair price, and when the real owner will demand his stock, you just need to buy it back, at its future value, a price that is lower than the present value. This is how to make money out of the market even when you have a crack.

You can also look at this other publication on my blog about short selling. This is another tutorial from Khan academy, divided in several video. I can’t help repeating, and I will do that again and again, that videos from Khan academy website are quite pedagogic, this is high quality content. After watching any video from Khan academy, you remember a lot of elements and content about the show. Which is not always the case with documentaries about finance.

Basic shorting: Basic Shorting

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