The Bottom Line:
- Short selling allows traders to profit from a decline in a stock’s price.
- A margin account is required to short sell, as it allows borrowing of shares.
- The Schwab Mobile app makes it easy to open, monitor, and close short positions.
- Factors like stock availability and borrow rates can impact the cost and feasibility of short selling.
- Short selling carries significant risk, so it’s crucial to have a well-defined plan before making a trade.
