How to Short Stocks in the UK

How to short stocks in the UK

As with any investment strategy, it’s important for investors to understand how short selling works before implementing it. The process involves borrowing shares from a broker in the hope that the price will fall, allowing you to return them at a lower value and pocket the difference (minus loan interest) as profit.

How to short stocks in the UK , the risk is that a share price may rise infinitely high – and if this happens to your short position, you’re potentially facing a large loss. This can be caused by other short sellers chasing the stock and triggering a flood of buy orders that push prices higher, and is known as a short squeeze.

Benzinga takes a look at the best brokers for UK investors to short stocks, offering a low fee structure, user-friendly platform and other trading features that help investors achieve their investment goals.

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Designed for advanced traders, CenterPoint Securities offers a platform that’s optimized for momentum and high-volume trades. Traders can access the firm’s massive shorting inventory and take advantage of its flexible order routing and discounts to optimize their trading strategies. For traders who want to leverage their skills, this brokerage also offers a Pro Account that provides greater liquidity and a short locate monitor. Traders looking for a more hands-off approach can use the firm’s IBot digital assistant. The firm’s web-based and mobile app platforms are highly customizable, with robust charting capabilities and a watchlist feature.