[Feature Request 🔧] Enable short selling

“Hard luck haha” was maybe too sarcastic :slightly_smiling_face: What I meant was that new investors or traders will have to learn to be responsible for their own actions. There is no investor in the world who hasn’t suffered a bigger loss at some point. They need to be aware of it.

About the fees: say that fixed monthly fee increases from £10 to £20 for short sellers (could go even higher but that’s not what I want to encourage :smile:) . And say that per trade fee for US stocks remains free. It is still super attractive for daytraders! On many platforms trades cost about $5. If a daytrader makes 50 trades per month, that’s $250 per month. With Feetrade it is just £20 per month and that’s all.

Some American brokers are starting to allow a feature whereby accounts can lend their shares to short-sellers at a certain interest rate - a “Stock Yield Enhancement Program”. I think this would definitely be an interesting feature for investors using Freetrade and a novel way for long-term investors to earn a higher yield.

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:face_vomiting: :nauseated_face: :face_vomiting: :nauseated_face:

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What about being able to sell covered call options? That would be another way to earn income on your shares.

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@Doyin What @Lachlanewing is suggesting is “securities lending”, not short selling in of itself. It should be its own thread.

I’d be happy to loan out shares. You can pay me for the pleasure of being wrong.

Edit - split securities lending into its own topic here

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It was it’s own thread before being merged by mods

I believe securities lending was mentioned as a potential future revenue stream in the series B investor deck. Haven’t seen the deck, but it came up in the Series B mega thread

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When you buy a stock you’re buying it from someone who doesn’t share your opinion on the value. They might think it’s about to drop hence their motivation to sell, this could be seen as shorting position. Where it goes wrong is when you get short campaigns being waged with false information or naked shorting - these should regulated / controlled with disclosed short positions over a certain size.

I don’t sell short. I lack the temperament for it. For that reason I appreciate and recognise the value short sellers can provide

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Exactly what I say.

No one will report anything unless the person reporting it can get financial compensation for their efforts. Short selling is a way of getting that compensation. Everyone has bills to pay

Abusive behaviours like fraud can be found in both sides, the short side and the long side. It’s not an exclusive intrinsic characteristic of short sellers. There are good and bad behaviours on both sides.

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One example of short sellers showing good behaviour please?

Enron

feel free to google it

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How about a second one?

Michael Burry and others in the 2008 sub-prime saga

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You’ve shown me 2 examples of short sellers correctly predicting the collapse of a company/sector and making a substantial profit from it.

Nikola is another example but more time to judge is needed.

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I’ve shown you one example of uncovered fraud (Enron) and profit taking by uncovering and exposing it via short selling supported by DD

I’ve shown you a second example with industry malpractice being unveiled and exposed by investors who made their Due Diligence, placed their shorts and profited

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Another example of a short seller shorting. Just because their targets are rubbish/fraudulent companies on these occasions doesn’t show any ‘good behaviour’. They’re out to make a buck first and foremost.

If there is no incentive for those who uncover the fraud what’s the point? The government will always be late compared to people who stand to gain.

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Fraud is a crime. Or at least it should be.

Making a profit when denouncing it is not, in my view a bad behaviour per se. Quite the opposite. I think it’s good behaviour. But hey, generally speaking, I take personal gratification by bullying bullies, and trolling trolls, so I guess that makes me biased

Please don’t confuse short selling with the abusive behaviours of some short sellers

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So we fix the government side. We don’t say short sellers are doing good when they short a fraudulent company and bad when shorting a non fraudulent one. Confusing outcome with intent here. No good behaviour shown.