What Are the Costs of Shorting a Stock скачать в хорошем качестве

What Are the Costs of Shorting a Stock

In this enlightening video by Adrian Reid from Enlightened Stock Trading, you'll gain valuable insights into the costs associated with shorting a stock. Discover the three major costs that every trader should consider before implementing a shorting strategy: brokerage or commission, stock borrow fee, and dividends. Adrian starts by explaining how commissions work, which are similar to trading on the long side. While some markets and brokers offer commission-free trading, brokerage fees still apply in most cases. Moving on to the stock borrow fee, Adrian delves into the concept of borrowing shares and the compensation required for borrowing. The stock borrow fee depends on factors such as stock liquidity and availability, with higher fees for harder-to-borrow stocks. Adrian demonstrates the Interactive Brokers' stock borrow fee tool and provides examples using Apple and GameStop as references. Furthermore, Adrian highlights the significance of dividends as a cost of shorting. When shorting a stock, you may need to reimburse the original owner for any missed dividends. However, Adrian suggests a strategic approach to mitigate this cost by closing the short position before the dividend payment date and reopening it afterward. Understanding the costs of shorting is crucial for designing an effective trading strategy. The stock borrow fee, in particular, can significantly impact profitability, making it essential to select liquid stocks with lower borrowing fees. Consideration of dividend payments is also necessary, especially when trading short term or high dividend-paying stocks. If you found this video informative, don't forget to give it a thumbs up and stay tuned for more insightful videos in Adrian Reid's series on shorting stocks. For additional resources and the opportunity to engage with Adrian, visit the blog associated with this video and leave your questions in the comments section. Keywords: mean reversion, systematic trading, mean reversion trading #ShortingStocks #StockBorrowFee #TradingStrategy #MeanReversion #SystematicTrading -------------------------------------------------------------------------------------------- At Enlightened stock trading, we help you discover a trading approach that ensures you become a consistently profitable stock and crypto trader. That trading approach is called systematic trading. To know more and get your FREE stock and crypto trading resources, Click Here: https://enlightenedstocktrading.com/f... Learn how you can become a Successful Crypto Trader: https://enlightenedstocktrading.com/o... Eliminate your trading mistakes and download the TRADING MISTAKE CHEAT SHEET now! https://go.enlightenedstocktrading.co...