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> In the common case you get paid to short as it’s a rebate on potential interest for the principal. What does this mean?
by bpt3 7y ago
> In the common case you get paid to short as it’s a rebate on potential interest for the principal.
What does this mean?
- acchow 7y agoYou're borrowing money for their shares; you can earn interest on that.
- bpt3 7y agoIf you don't mind explaining, how does this work in practice?
- NicoJuicy 7y agoYou give back shares on a later date. But sell the borrowed shares for money now. If you don't know it, don't try it. You are playing with money, you don't have.
- bpt3 7y agoThanks for clarifying, I know what shorting is but have never done it in an account where it made sense to do what the parent was suggesting.