Beginner?s Guide to Shorting Stocks UK

When investors invest in shares, they often look for assets that will rise and reap profits over the long term. However, shorting takes the opposite approach and aims to profit from a share price fall. This type of trading can be extremely profitable for those who know how to trade, but it comes with its own set of risks and is not suitable for everyone.

Beginner’s Guide to Shorting Stocks UK by borrowing shares that you do not own and then immediately selling them on the open market, hoping that the price will fall shortly afterwards. When the share price does fall, you can then buy them back at a cheaper rate, return them to your broker and pocket the difference (minus any loan interest) as your profit.

Most Reliable Trading Apps for UK Investors

The best UK brokers for shorting stocks will offer an easy to use trading platform, competitive spreads and a range of other features and tools to help you make smart trades. Benzinga has selected some of the most popular and trusted brokers to help you find the right one for your trading style and requirements.

IG offers a number of ways to short share prices including spread betting, CFDs and options. Open a free demo account to practise your trading strategies in a risk-free environment. You can also open a live account to start trading in less than five minutes.