3 ms·
When you buy before you sell, it's called a 'long' trade. You expect the stock to rise in value. Normal trade. When you sell before you buy, it's called 'short
by dhruvkar 6y ago
When you buy before you sell, it's called a 'long' trade. You expect the stock to rise in value. Normal trade.
When you sell before you buy, it's called 'short' trade. You expect the stock to fall in value.
Example:
I shorted GME at $25 (sold), expecting it would fall to $12, where I could buy it back.
Reality:
/r/Wallstreebets and others decided to keep buying to make the 'shorts' buy (i.e. cover) also, creating a buying frenzy and an insane rally.
- sjg007 6y agoYou can buy call options too.. unless that fell apart not sure. If anyone has watched the Showtime show Billions, this is the plot of Season 6. Basically Taylor vs Axe.
- arcticbull 6y agoNah u/DeepFuckingValue turned $50K of call options into $50 million dollars in the squeeze.