GG to those who shorted the stock, unless they long PUT
Those who really shorted the stock these few days should be feeling the pain now. Hope most of them long PUT instead of really shorting the stock.
This is the reason why I have advocated for safe trading. If newbies listened to those who ask them to take a super high risk position like shorting the stock, most likely will see a margin call already.
$NIO Inc (NIO.US)$ $UP Fintech (TIGR.US)$ $Futu Holdings Ltd (FUTU.US)$ $DiDi Global (Delisted) (DIDI.US)$
This is the reason why I have advocated for safe trading. If newbies listened to those who ask them to take a super high risk position like shorting the stock, most likely will see a margin call already.
$NIO Inc (NIO.US)$ $UP Fintech (TIGR.US)$ $Futu Holdings Ltd (FUTU.US)$ $DiDi Global (Delisted) (DIDI.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moo Contributor
crawled out of poverty, working towards FIRE!! (financial independence, retired early)
15KFollowers
109Following
17KVisitors
Follow
102487453 : whats difference between long put and short?
71299788 102487453 : The maximum loss of put is all principal, and there is an upper limit of loss.
MonkeyGee : you are a chad?
doctorpot1 OP 102487453 : long and short is just the direction of the trade. I.e. long means you buy, short means you sell (when you dont have the item).
If you short a stock means you borrow stock to sell the stock now, hoping to buy back later. This is super risky because you can lose infinite amount of money theoretically.
if you long a PUT option, that is different. you bought an option so that you have the choice to sell the shares at a given price. so the max loss is capped at whatever you paid for the PUT option.
even though both are way to bet that the company price will keep falling, you can see that shorting is very dangerous, but long a PUT is so much safer.
doctorpot1 OP MonkeyGee : hahahaha I'm just a regular person trying to help people and learn at the same time![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ben 23 : Relief rally is kinda of expected. I only buy $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ and $Tradr 2X Short Innovation Daily ETF (SARK.US)$ at low price and leave the shorting to the experts.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
doctorpot1 OP Ben 23 : Yea super volatile market. Best to avoid shorting and leverage play. just one news, can make market stock drop 40% or fly 40%. crazyyyy time
toomanyscammers : Hello! Short means to think it’ll go down so you buy shorts ? Long puts means you think it’ll go up eventually?
doctorpot1 OP toomanyscammers : you can't buy a short. you can long a stock or short a stock. you can long an option or short an option. so you short (a.k.a sell) a stock if you think it will go down. you long (a.k.a buy) a stock if you think it will go up.
PUT option is different, you long/buy if you think it will go down.
so if you think stock will go down you can either short the stock or long a PUT option of that stock. but the risk reward is different. shorting stock is more dangerous
MonkeyGee doctorpot1 OP : Lets GO !!!!!!
View more comments...