Short Selling Process Here is the process:
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Short Selling Process
Here is the process:
Request the short sell from your brokerage.
Your brokerage will lend you the shares, if they have them available. It's not uncommon for the shares to be unavailable.
Your brokerage will immediately try to sell the shares on the stock market.
Cash from the sale goes into a special short-sell account that you cannot access. It is used as collateral for the shares that you borrowed.
Wait for the stock to go down.
Finish the trade by choosing "Buy to Cover." This action will buy shares from the market and return them to your brokerage. You will have made a profit if your short sale price was higher than your buy back price (minus any commissions).
Note that your brokerage may request that you return the shares at any time. They may need to return the shares to other customers.