You can short sell on Trakinvest, and make % gains based on market fluctuations.
There’s a few ways you can trade on Trakinvest, just like in the real world. Trakinvest players have the option of ‘going short’, or selling equities they don’t yet own.
Say, for example, your intuition is telling you a stock will decrease in value in the coming days. If you’re right and you buy it now, you won’t be making money. However, if you sell, and it does in fact decrease in value, you can buy it back and make a sweet margin.
It’s easy to short a stock, just click on SHORT to open or close.
To go short, you’ll need to pick a stock you want to go short on, enter the number of shares to short, then hit ‘OPEN’. Once the order executes, it’ll list in your portfolio as ‘SHORT’, and will be coloured red.
When you’re ready to close this position, simply head to the stock, enter the number of shares to close, then hit ‘Close’. Note, this function won’t be available if you haven’t shorted the stock.
Here’s an example:
- Jessica has done her research and is confident the Apple Inc. stock price will fall in the coming days.
- She types 100 into the box, then clicks the sell button. The time is 10.08AM New York time on Monday, and the price of AAPL is currently US$112.36.
- Later that day, the price falls to US$111.98 and Jessica is ready to close this position. She re-enters 100 into the box, then clicks the ‘Close Short’ button.
- After Jessica’s order has been executed, she notices she has made $38 profit, just like that.
See you on the floor.