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No, not really. You need to risk a lot of capital to make any money at all. For instance, to make even $10,000 on a 5% drop in Facebook stock, you would need t
by unreal37 13y ago
No, not really. You need to risk a lot of capital to make any money at all.
For instance, to make even $10,000 on a 5% drop in Facebook stock, you would need to sell short $200,000 in Facebook stock and would need to have $100,000 in cash deposited with a broker (initial margin). If the stock goes up by even a penny, you would need additional margin to cover that. A young hacker with no money cannot make any by shorting stocks.
- datadata 13y agoYou could create a much more leveraged position with options. With a put option buy, your maximum loss is capped, so you wouldn't need any additional margin.