CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read full risk warning.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CLOSE MENU
Start Trading
Open Account
Create Your Account
Demo AccountReal AccountProfessional Client
Products
Range of Markets
Currencies CFDsStocks CFDsIndices CFDsPrecious Metals CFDsEnergy Products CFDsAgriculture Products CFDsUS Treasuries CFDsETFs CFDsDigital Currencies CFDsFull Product List
Trading Product Details
Spreads and ConditionsRecent RolloversFortrade Rollover RatesSwap Free Islamic AccountTrade Margin RulesTrade Margin RulesProduct Disclosure Statement
Platforms
Fortrade Trading Platform
Web FortraderMobile Apps
MetaTrader4
Mobile MetaTrader4WebTrader4Desktop MetaTrader4
Trading Academy ​
Online Academy​
Fortrade’s Online AcademyTrading WebinarsYouTube TutorialsGlossary of Terms
Useful info
Market AnalysisTrading CentralMarket CommentaryTrading Central AnalysisEconomic CalendarHistorical OverviewBlogQ&A
Trading Tools
Currency Converter ToolMargin Percentage CalculatorSwap Rates CalculatorPip Value Calculator
Company
About us
RegulationPolicy & ProceduresAffiliates & PartnersUpdates & NotificationsWork With Us UKWork With Us SRWork With Us CA
Support
FAQsContact usSupport[email protected][email protected]+44 203 966 4506+357 25 262083+44 204 571 7564Trading Support Phone+1 778 658 0363PhoneEmailChat with us
+44 203 966 4506 +44 204 571 7564 +61 28 3246571 +1 778 658 0363 +357 25 262083 24/5 Contact Us Live Support Affiliate With Us
EN
Deutsch Français English Español Hrvatski Italiano Nederlands Polski Português Slovenščina Svenska Русский العربية Shqip Македонски Bosanski Magyar
Fortrade Fortrade Fortrade
Log in
Forgot password?
Sign up
$$FirstName$$ $$LastName$$
Logout
My AccountUser AccountsDepositUpload DocumentsAccount VerificationNotification SettingsTrading HistoryMonetary TransactionsWithdrawalPassword ManagerProfessional Client ApplicationMy Profile & SettingsTransfer AttachmentsPermission to share account detailsManage My InformationClient Qualification TestKnowledge QuizAnnual Info UpdateLog out

How Do You Short Selling Stocks?

Stocks and short selling could potentially work well together, but could also be risky.

Filip Dimkovski - Writer for Fortrade
By Filip Dimkovski
Korana Braun - Editor for Fortrade
Edited by Korana Braun

Published May 18, 2024

Hand holding a small tube with a hypodermic needle signifying biotech stocks

Short selling is an investment technique where investors borrow shares from a lender and then sell them in the open market, hoping to buy the stock back at a lower price later. Investors potentially profit from the difference between the purchase price at which they sold the stock and the lower buy-back price.

Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of the instrument itself



» Explore the main drivers of stock price movements and why tech stocks fall when interest rates rise

Risks of Shorting Biotech Stocks

Biotech stocks have a higher degree of volatility than most other sectors due to their reliance on scientific advancements and regulatory changes.

Investors should be mindful that speculative investments in biotech stocks can lead to large potential losses if the stock does not perform as expected. To be prepared for risk, investors should employ careful strategies such as diversifying their trading accounts and setting stop-loss orders when making short trades on biotech stocks.

» Ready to trade CFDs? Learn more about opening an account with Fortrade

Short selling demands careful research, technical acumen, and a thorough understanding of market dynamics. Some things you should consider before deciding to trade include:

» Enhance your CFD trading knowledge with our online webinars

Create Fortrade Demo Account

Practice real-time trading with virtual money.

Open Account


Related Articles

How to Trade Brent Crude Oil CFDs Without Experience

How to Trade Brent Crude Oil CFDs Without Experience

Filip Dimkovski

November 21, 2023

Investing in Agricultural Commodities With CFDs: What You Should Know

Investing in Agricultural Commodities With CFDs: What You Should Know

Andrew Moran

June 18, 2024

CFDs vs ETFs: Which One Is Right for You?

CFDs vs ETFs: Which One Is Right for You?

Marcel Deer

May 21, 2024

What Is the U.S. Dollar Index (USDX) & How to Utilize It

What Is the U.S. Dollar Index (USDX) & How to Utilize It

Andrew Moran

May 21, 2024

How to Trade Natural Gas in {Year}

How to Trade Natural Gas in 2025

Fortrade

November 20, 2024

Ready for trading? Start now
© 2014 -
Fortrade Ltd. All Rights Reserved.
Fortrade Cyprus Ltd. All Rights Reserved.
This website is owned and operated by Fortrade Limited.
ciro
ciro
Fortrade Mobile Apps
Secure Payment Options
Connect with us - Fortrade Online Trading
CompanyAboutFortrade PartnershipsWhite Label BrandsAffiliate with usContact usCareerCareerCareerCareer
CFDs ProductsCurrencies CFDsStocks CFDsIndices CFDsPrecious Metals CFDsEnergy Products CFDsAgriculture Products CFDsUS Treasuries CFDsETFs CFDsFull List of Products
PlatformsWeb FortraderMobile FortraderDownload MetaTrader 4Download MetaTrader 4Download MetaTrader 4MT4 WebTraderMT4 WebTraderMT4 Mobile App
AcademyTrading WebinarsTrading eBooksBeginner's Trading CoursesAdvanced Trading CoursesTrading VideosTop Trading StrategiesGlossary of TermsBlogQ&A
ResourcesFAQsMarket NewsMarket CommentaryTrading CentralTrading Central AnalysisTrading Product DetailsTrading Conditions PremiumFortrade Rollover RatesCompany Policy & ProceduresSwap Free Islamic AccountTrading ToolsKey Information Documents (KID)
LegalPrivacy PolicyTerms and ConditionsBest ExecutionOrder Execution PolicyPrivacy PolicyConsent to Personal Data ProcessingRisk Disclosure StatementComplaints ProcedureConflicts of InterestClient AgreementComplaints ProcedureProduct Disclosure StatementFinancial Services GuidePrivacy PolicyHedging Counterparty PolicyTarget Market DeterminationTerms and Conditions - Client AgreementOrder Execution PolicyPrivacy PolicyRelationship DisclosureRisk DisclosureHow CIRO Protects InvestorsComplaints ProcedureTrade Margin RulesCIRO Complaints BrochureConflicts of Interest DisclosureCIPF - Canadian Investor Protection FundBest Interest and Order Execution PolicyClient AgreementPrivacy PolicyClient Categorisation PolicyCompany InformationComplaints ProcedureConflicts of Interests PolicyInvestor Compensation FundRisk DisclosureWebsite Terms and ConditionsPillar III disclosuresFortrade Cyprus GDPR PolicyWholesale Client AgreementWholesale Client Information StatementTerms and ConditionsPrivacy PolicyRisk Disclosure
Risk Warning and Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs and margin FX are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose. Be Aware: You can lose all, but not more than the balance of your Trading Account. You do not own, or have any rights to, the underlying assets. Past performance is no guarantee of future performance. This information is intended to be general in nature and is not financial product advice. Any advice contained on this website or provided to you by Fort Securities Australia Pty Ltd is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. We encourage you to obtain independent financial advice and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to determine if this product is suitable for you before deciding to enter into or obtain any financial products issued by us. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read full risk warning.

Fortrade is a brand name of Fortrade Cyprus Ltd, a Cyprus Investment Firm authorised and regulated by the Cyprus Securities and Exchange Commission, license number 385/20, with registered address Kosta Partasides Street 34, Abbey Tower, 3030 Limassol, Cyprus.

Fortrade Cyprus Ltd provides investment and ancillary services to residents of the European Economic Area (EEA).

All CFDs, including cryptocurrency CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Be aware, as a retail client you can lose all, but not more than the balance of your trading account due to Fortrade’s negative balance protection.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Risk warning   Privacy policy
Risk warning   Privacy policy
Risk warning   Privacy policy
Risk warning   Privacy policy
Risk warning Risk warning   Privacy policy Privacy policy
Risk warning   Privacy policy
Fortrade Authorised and Regulated Entities:
Fortrade Ltd., 43-45 Dorset Street, London, W1U 7NA, London, United Kingdom.
Office: Michelin House, 81 Fulham Road, London. SW3 6RD.
Authorised and regulated in UK by the Financial Conduct Authority (FCA), FRN: 609970.
Fortrade Canada Limited, 1200 Waterfront Centre, 200 Burrard Street, P.O. Box 48600, Vancouver BC V7X 1T2, Canada.
Regulated by the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). CRN: BC1148613.
Fort Securities Australia Pty Ltd. (T/A Fortrade Australia), Level 5, 20 Bond Street, Sydney NSW 2000.
Licensed and regulated. ABN: 33 614 683 831 | AFSL: 493520.
Fortrade Cyprus Ltd, Office 302, Abbey Tower, Block A, 34, Kosta Partasides Street, 3030 Limassol, Cyprus.
Regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC) with CIF license number 385/20.
Fortrade Mauritius Ltd. The Cyberati Lounge, Ground Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebene, Republic of Mauritius.
Authorised and regulated by Financial Services Commission, Mauritius (FSC), SEC-2.1B investment dealer number: GB21026472.
Edit GDPRWidget
Action Required: Password Update
Action Required: Password Setup
To enhance your login experience, you’ll soon use only your email and a password instead of your TP number. Set your new password now to ensure seamless access.
Starting today, you’ll need to log in using your email and a password instead of your TP number. Set your new password now to regain access to your account.
Set Password
Important Update for Serbian Users
It looks like you're a Serbian resident.
To comply with regulatory requirements, our services for Serbian residents are provided through our trusted partner, Kapital RS Inc A.D. Belgrade.
Continue on KapitalRS
You are being redirected to the {{Brand name}} website, regulated by {{regulation name}}, based on the information you provided so far. Terms and protections may differ.