Hello everyone! We are proud to say that our little channel just got its first partner! 🥰If you would like to support our channel and help us create more of these videos, please check out eToro 👉 fortunly.com/youtube-promo-usa (if you are from the US) or fortunly.com/youtube-promo-global (if you are from anywhere else in the world). Thank you for the support! These videos are hard to make and we appreciate all the help we can get in order to produce more awesome finance content! 😎
This video helped me realize an epiphany. I was wondering,"but how does it drive price down?" Then I realized it's because you're introducing more supply without increasing demand, so the price goes down. The short seller is borrowing shares from shareholders to increase the float!
Would you ever try short selling? Or would you rather swim with alligators? Let us know your thoughts! And also, did you notice that red button up there that says ‘subscribe’? Hit it and see the magic it creates.
Just saw the GameStop doc on short selling in the first 10 minutes. Help me understand this: they said if they borrow a stock like IBM for 10 dollars from someone. Wait for it to go to 20 percent loss, so 8 dollars. Then sell it back to the person and make 2 dollars. But won't they be selling that stock to the original owner at 8 dollars? So now the owner is out 2 less dollars and the hedge fund broker pockets 2 dollars. That doesn't make sense. The owner lost 2 dollars for the broker to gain 2 dollars. WTF? Do people not see this. And am I missing something? Please let me know.
You aren’t selling the stock back to the person. You are selling it back to the market. And the person you borrowed from is holding the stock anyways. They are holding the stock because they think it will go up. I’m not sure where you’re making up this magical $2 for the broker in your head but you need to rethink it.
It's kinda incredible that our financial system allows this kind of trading... But even if I don't agree with it, I'm glad I now understand it. Nice vid!
Hey there! Thank you for the kind words! A lot of effort, research and work goes into every video we make, so we always appreciate it when someone notices our hard work. But in all honesty, we are just a small team of animators and writers that does this out of pure passion for video animation and finance, so every like, share, comment and subscription from you guys means the world to us! :) We’re in the process of making a new video right now, so make sure you check it out when it comes out! Oh, and if you have any other questions, shoot! We are an open book.
Basically you borrow a stock from somebody without them knowing it then you create cell pressure that drives the price down and tricks people into selling everything off then you buy the stock back and give it back to the seller who just lost money cuz you screwed them over
the only video that explained "borrowing" a stock. Ignore all the videos that have 1+ million videos, or any damn website that doesn't explain the borrowing part, without knowing this it is super confusing.
My guess is because they are betting you are wrong and the are happy to collect the interest fee for borrowing. Basically as there would be with any loan. In the end they can’t loose money as long as they don’t sell the stock themselves below what they paid for them originally. It’s all gambling at the end of the day
Hello everyone! We are proud to say that our little channel just got its first partner! 🥰If you would like to support our channel and help us create more of these videos, please check out eToro 👉 fortunly.com/youtube-promo-usa (if you are from the US) or fortunly.com/youtube-promo-global (if you are from anywhere else in the world). Thank you for the support! These videos are hard to make and we appreciate all the help we can get in order to produce more awesome finance content! 😎
I realized that I am stupid , I don’t get you
This video helped me realize an epiphany. I was wondering,"but how does it drive price down?" Then I realized it's because you're introducing more supply without increasing demand, so the price goes down. The short seller is borrowing shares from shareholders to increase the float!
Exactly! Well done. 🤓
Would you ever try short selling? Or would you rather swim with alligators? Let us know your thoughts! And also, did you notice that red button up there that says ‘subscribe’? Hit it and see the magic it creates.
Just to confirm, the lender can demand the stock back at any time and you must buy the stock and give it back immediately?
Love your videos! You explain complicated concepts so well.
Great explanations and animation! I've seen many, but this is one of the best videos on shorts!
Thank you for your feedback! 🙌🏻
Ive finally understood short selling! amazing videos, the animations are spot on!
Just saw the GameStop doc on short selling in the first 10 minutes. Help me understand this: they said if they borrow a stock like IBM for 10 dollars from someone. Wait for it to go to 20 percent loss, so 8 dollars. Then sell it back to the person and make 2 dollars. But won't they be selling that stock to the original owner at 8 dollars? So now the owner is out 2 less dollars and the hedge fund broker pockets 2 dollars. That doesn't make sense. The owner lost 2 dollars for the broker to gain 2 dollars. WTF? Do people not see this. And am I missing something? Please let me know.
You aren’t selling the stock back to the person. You are selling it back to the market. And the person you borrowed from is holding the stock anyways. They are holding the stock because they think it will go up. I’m not sure where you’re making up this magical $2 for the broker in your head but you need to rethink it.
Man, I never thought of it this way! That's pretty neat! Great video, thank you! ❤️
It's kinda incredible that our financial system allows this kind of trading... But even if I don't agree with it, I'm glad I now understand it. Nice vid!
You're right - it is what it is! Thank you for your feedback. 🙌🏻
How do you make such good videos with so little views? Instant sub
We're wondering the same! 😂 Thank you for your support. 🙌🏻
Great explanation, thanks!
How do you guys afford to make these high quality videos?
Hey there! Thank you for the kind words! A lot of effort, research and work goes into every video we make, so we always appreciate it when someone notices our hard work. But in all honesty, we are just a small team of animators and writers that does this out of pure passion for video animation and finance, so every like, share, comment and subscription from you guys means the world to us! :) We’re in the process of making a new video right now, so make sure you check it out when it comes out! Oh, and if you have any other questions, shoot! We are an open book.
Hi, can you guys please cover Private Equity Funds...thank you in advance:)
Awesome video!
perfect explanation
Best time to short is around a economy meltdown
💯
Is this video before or after the GameStop meme stock fiasco?
Basically you borrow a stock from somebody without them knowing it then you create cell pressure that drives the price down and tricks people into selling everything off then you buy the stock back and give it back to the seller who just lost money cuz you screwed them over
2100% correct!!!
Lol. No
interesting channel.. would like to see more content..
You guys should make a video on heavily shorted stocks currently like AMC and SoFi
Thank you for your idea!
This is awesome
the only video that explained "borrowing" a stock. Ignore all the videos that have 1+ million videos, or any damn website that doesn't explain the borrowing part, without knowing this it is super confusing.
Thank you for this acknowledgment, our team is doing a happy dance now. Stay tuned for more videos soon! 🙌🏻
First!
great video
But why do they lend you stocks?
thank you lol that's why shorting still doesn't make sense to me
My guess is because they are betting you are wrong and the are happy to collect the interest fee for borrowing. Basically as there would be with any loan. In the end they can’t loose money as long as they don’t sell the stock themselves below what they paid for them originally. It’s all gambling at the end of the day
These are great, keep it up! :D
I don’t get it. I’m buying and selling the normal way 🤷🏽♀️
Short sellers don't simply borrow shares and hope for the share price to drop. They borrow shares and sell them below current stock price.
Borrowing the stock is not the same as actually owning it,I dont care what anyone says...
what is "banc acc"? besides a clear tactic to obfuscate any explanation. this made absolutely no sense - on purpose.
Evil companies lol 😆
you cannot explain this using slang terms like "bet, short, long etc." i dare anyone to explain this NOT using gibberish and stolen words.