Short selling


(Emma) #21

I’m not totally sure how it all works but aren’t the large fees an element of covering the potential loss (as well as the profit from people who see the price rise before they can rebuy)? Are the potential losses an acceptable risk for a start up? If Freetrade is attractive to day traders because of how much they can save them how would an additional fee keep it attractive?

I’m not sure “hard luck haha” is the message they want to be sending :yum:


(Karlo) #22

“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.