Short Position: Meaning, Overview and FAQs
Just as when you go long on margin, it’s easy for losses to get out of hand because you must meet the minimum maintenance requirement of 25%. If your account slips below this, you’ll be subject to a margin call and forced to put in more cash or liquidate your position. Short selling occurs when a trader borrows a security and sells it on the open market, planning to buy it back later for less money. Theoretically, the price of an...