Best Brokers for Short Selling in 2024 • Benzinga - Benzinga
Benzinga readers often choose CenterPoint Securities or TradeZero as the best brokers for short selling. Day traders who speculate on an upcoming decline often sell stocks short. But you can also use short sales to balance portfolio allocations and manage risk. That's one reason why you need the best brokers for short selling. When you sell stocks short, you borrow the stock from your stockbroker, then sell the borrowed stock in the market and leave an open short position. You close that short position by repurchasing the previously sold stock, hopefully for a profit. As a short seller, you profit by buying back the sold shares at a lower price and making the difference between the sale price and the purchase price on each share. If the stock goes up, you wind up paying a higher price for the short stock and take a loss. Selling short also has some important rules. Not all brokers are created equal, so carefully ...