Steps for Short Selling
- Short Sell
The investor borrows the target stock from the broker (interest and fees may apply). The borrowed shares are then sold at the current market price or a specified price, generating cash proceeds.
- Buy to Cover
When the stock price falls to the target price, the investor buys back the same number of shares at a lower price.
- Return the Shares + Profit
The shares purchased are automatically returned to the broker. The difference between the selling and repurchase prices represents the profit, after deducting costs such as interest and fees.
Search for the target stock you wish to trade, then select Trading → Short Selling (as shown in the image below).
The system will automatically calculate the account assets and determine the available quantity for short selling. After setting the order type, quantity, and price, select Sell Short and wait for the order to be executed. Conversely, select Buy to Cover to close the short position. (As shown in the image below.)
Please note that not all U.S. stocks support short selling. Whether short selling is supported depends on the information displayed on the Short Selling page. For example, if the available short-selling quantity is shown as 0, or the text “This stock does not support short selling” is displayed below the Buy to Close button, it means that the stock is not available for short selling, as shown in the image below.
