How to Short Stock in a Margin Account

Video Transcript

"OK how to short stocks in a margin account. For 99.9% of the time, your brokerage will not allow you to do that. You're basically when you are shorting a stock, you're selling it before you own it and if you're already in margin, you're borrowing that money. So to borrow the money to sell something that you don't own yet, you've sort of got a double negative there so the brokerage house is not going to allow that to happen. I will say 99.9% of the time because there's going to be, there will be exceptions, certain where you may find that option available but my best advice would be A, don't do that, don't short a stock unless you really know what you're doing and if you're in a margin account, really concentrate on buying things long and getting that money back into your cash balance."