When you buy the shares back you aren't going long, you are simply selling your short position out, SO if you want to short ABCD at $100 you would simply put your order in and instead of buy you would "SELL Short" the stock and when the stock falls to $95 you simply BUY to cover your position. When you buy to cover your position you are "selling" your positions....you do not own any position after "you buy them back".
how do you short?
- Thread starter cashclay
- Start date
When you buy the shares back you aren't going long, you are simply selling your short position out, SO if you want to short ABCD at $100 you would simply put your order in and instead of buy you would "SELL Short" the stock and when the stock falls to $95 you simply BUY to cover your position. When you buy to cover your position you are "selling" your positions....you do not own any position after "you buy them back".
u borrowed 100 shares of XYZ and sold it upon borrowing
now u have to return those shares,
so when u buy 100 shares of XYZ back - you automatically returned them to the broker
as a result u do not have any XYZ shares on your account ,and cash wise u have the difference in the price between the borrowed and the returned shares
u not borrowing money , you borrowing shares
No, if you sold short 100 shares and bought back 100 shares, then your 100 shares you bought simply negates the short position, so you'd be flat.
Of course, if you buy stock, then by default you are long the shares, and are able to sell it off again. I think perhaps you are asking if you bought MORE shares than you sold short? If that's the case, then you would be net long, since the shares you bought would offset the short position, and thus you would be "long the stock" for any excess shares.
Want to get indoctrinated into the world of shorts? Read this great book "The Big Short" by Micheal Lewis.