Question by Truth: How does one bet against a stock?
I recently saw a news article (need to look it up again) about a man who made a lot of money by betting against Facebook’s IPO. Likewise, I hear that George Soros has made a lot of money by betting against currencies.
So how does that work? I imagine betting against a stock is nothing like betting against Tiger Woods in a golf tournament (taking the field).
So is it like someone who sold a house at the top of the market. Then bought the house back after the market tanked?
Answer by Keren
You sell it first.
Then you buy back your shares at a later time.
I know it sounds backwards, but it’s really very simple.
Just put a sell order. Sell short.
What do you think? Answer below!