Uploaded by Robin Parris on October 28, 2014 at 12:29 am
Short Selling strategy
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I have a question about shorting. when a short order (market or limit) hits
the books, do market makers or any other traders know the order is short,
or does it appear just like any other sell order on the books?
for example, let’s say the current bid is $50, and the current ask is 50.01.
There is also a supply for 5000 shares at $50.02. Now if I place a short
order for 500 shares at $50.02, does the supply at $50.02 increase from
5000 to 5500, or is there some sort of flag that is created where an
observer can see the seller is actually looking to borrow shares?
similarly, when I look to cover, will my buy to cover order look exactly
the same as all the other buy orders on the book and join the demand at the
price i am looking to cover, or again is there some sort of flag that shows
the buyer is looking to close a position – rather than open.
What do you use to get filled short? A stop or stop limit ? Thanks for
@prudentinvstr Most of the time I short it with a “limit order” But if i am
trading a stock that keeps testing a resistance level then finally breaks
through i use a “buy stop” An example from today is CRM at the 120 level
I use Tradeking and they recently merged with zecco so where also getting
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