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Simple Stock Short Selling Profit and Loss Calculator

Simple Stock Short Selling Profit and Loss Calculator

Related: Stock Cost, Profit and Loss Calculator

Short selling is the practice whereby (equity and non-equity) market participants sell securities they do not own with a view of buying them back at a lower price.

There are two main types of short selling

1. Covered short selling – the sale of securities that have been borrowed from the holder for a fee, so that the short seller can ensure delivery of the stock at settlement.
2. Naked short selling – this is when securities have been sold but there is no arrangement in place to borrow or locate the securities.