1. 2,154 Posts.
    your example on synthetic shorts is correct.. however the beauty of 'short selling' is having the ability to short a number of stocks which do not provide liquid eto's

    stocks such as pwr smx slx erg alu soh myo hdr crs etc are shortable stocks.. they however, do not provide eto's , the advantage is as we know the market is easier to play on the downside...

    sorry had to post in the 'test' forum as my previous reply to you was not published..just pointing out an important difference and factor at why professional traders choose to short sell stocks..

    the variety of stocks to borrow and short sell is the key, equally important is the institution which has the shares to lend you (you borrow from the insto) and short ... also, a good hedge if you go long..
    i.e, tls (any shortable stock) breaks support, but you want to hold on for long-term capital return and growth, an alternative way to gain the capital return + profiting on the downside without any concerns of time decay and any other sensitive co-efficients is to short sell + hold onto your possie which ultimately will already provide your 20% margin to short sell.... long $100k, able to short upto $500k~! .. tls falls 20%.. you pocketed $100k + dividends.. thank tls's mother for the rabbits..
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