Short selling -
Short selling -
You borrow, or take an option on some shares in a company.
You sell the shares at the going rate, knowing or hoping the shares will drop in value.
When the shares drop in value, you buy them back at the new price and return them to the owner, and pocket the difference.
It's risky and controversial because some traders have tried to drive the share price down by fake news and fake pr.
How do I buy shares in a 'no deal' scenario?
How do I buy shares in a 'no deal' scenario?
It's not worth it as if it goes the other way (ie. the shares go up in price) then there is an unlimited amount of debt that you will then be in.
Yes he was “betting” on the currency markets, specifically yen but going up not down so not exactly shorting. He made a disastrous loss when the Kobe earthquake hit.That's what happened to Nick Leeson at Baring Bros. He kept doubling his stake to cover the losses, and doubling again, and again. His $10 million loss turned into a $1.4 billion hole that swallowed Baring.
That's what happened to Nick Leeson at Baring Bros. He kept doubling his stake to cover the losses, and doubling again, and again. His $10 million loss turned into a $1.4 billion hole that swallowed Baring.
I can understand how you would short 'no-deal'. I also understand how we can measure the extent of shorting going on. I'm much less convinced that we can ascribe the shorting to no deal rather than, say, covid. Hedge funds are not required to 'show their working' when making bets.