Greg from Portugal

Registered at the short selling broker Pepperstone, 4 minutes ago.

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Learn how to short

* This article is part of our short selling school and is aimed at beginner level readers on how to start with their first short position.

When trading CFDs, opening a short position is just as easy as going long in a position. Historically it has been complicated to make money on down trends in the stock market. However, with contract for difference there are a lot of trading platforms offering the opportunity to take a short position.

You could open a short position from start to scratch in just a few minutes by following our guide. Just follow the 3 simple steps below and get ready.

Step 1 – Decide instrument to short

Decide which type of instrument you want to short. Regardless if it is stocks, currencies, commodities, crypto or something else, it is wise to make a small first trade just to get the hang of it.

If a stock has dropped a lot already, it is always good to understand why to try and predict if it will drop even more. The below is the top loser during the last 24 hours.

Bluebird bio Inc logo

Company Name: Bluebird bio Inc
“The biggest loser stock currently.”
Ticker: BLUE
Primary Exchange: NASDAQ
Latest price: 2.86
p/e Ratio: -3.19
24h Change percent: -40.54%

If a stock has gained a lot recently, it may turn in the other direction to compensate for a big upswing. Or it may continue up of course. So you better understand why there has been a big jump up in the stock price to understand whether there is a chance that it will continue or not.

The traded stock below is the top gainer during the most recent 24 hours.

MBIA Inc. logo

Company Name: MBIA Inc.
“This is the stock which is the top gainer over the last 24 hours currently.”
Ticker: MBI
Latest price: 13.42
p/e Ratio: -1.63
24h Change percent: 81.84%

Step 2 – Choose broker

Once you have decided on the instrument, in our example; a stock. Choose the broker and which trading platform you want to use. Different brokers offer different spreads (difference between buy and sell price) and not all stocks are available to short on all platforms. We have a toplist of the best brokers that we review and rank based on a number of important parameters.
›› We recommend a broker called Skilling – Check it out

Rating: 9.57/10
Minimum deposit: €100
Description: Ready or not? Go short or go long! Skilling is a great place to start; and stay with. A professional short selling platform for everyone. Try today!
Risk warning: 82% of non professional CFD accounts lose money.

Step 3 – Open your trade

Register with the broker from our toplist and make a deposit to your account. Find the stock, pick the SELL option, set the amount you want to open the position with, set the take profit and stop loss limits. Some brokers offer a leverage on your trade. Submit and open your position.